U.S. Sustainable Investment Funds Outflows in Q1

SOURCE www.axios.com
U.S. sustainable investment funds experienced their worst-ever outflows in Q1, while European sustainable funds still saw positive inflows despite a decrease. Europe dominates the sustainable funds market with over $2.5 trillion out of the world's total $3 trillion.

Key Points

  • Europe dominates the sustainable funds market with over $2.5 trillion out of the world's total $3 trillion.
  • Rising interest rates make the future less valuable compared to the present, negatively impacting ESG investments.

Pros

  • European sustainable funds still saw positive inflows despite a decrease in the first quarter of 2022.

Cons

  • U.S. sustainable investment funds suffered their worst-ever exodus in Q1 with $8.8 billion in net outflows.