Global Sustainable Fund Flows: Q4 2025 in Review
2025 closes with continued outflows amid persistent headwinds.
Global sustainable open-end and exchange-traded funds recorded an estimated USD 27billion in net outflows in the fourth quarter of 2025, compared with restated outflows of nearly USD 55 billion in the previous quarter. Redemptions by large UK institutional investors—reallocating from pooled ESG funds into bespoke ESG mandates—accounted for much of the outflow in both quarters. Yet the broader backdrop remained challenging, with persistent headwinds continuing to weigh on investor appetite.
Explore how regional differences are shaping the sustainable investing landscape, with Canada, Australia/New Zealand, and Asia ex-Japan recording positive inflows. Learn how regulatory changes and evolving investor preferences are influencing fund flows, product launches, and market dynamics.
