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Sustainable fund flows turn around

Morningstar’s Global Sustainable Fund Flows report for Q2 2025 found a notable rebound of net USD 4.9 billion, up from the record-high redemptions of USD 11.8 billion in Q1 2025.

This was primarily driven by a recovery in Europe, as investors poured USD 8.6 billion into fund flows despite geopolitical and regulatory uncertainties. On the other hand, sustainable funds in the US bled money for the 11th consecutive quarter with withdrawals of USD 5.7 billion, while the rest of the world in aggregate attracted around USD 2 billion.

global sustainable fund flows q2 2025

Figure 1: Quarterly Global Sustainable Fund Flows Q2 2025 (USD Billion).

What is affecting flows?

An increasingly complex geopolitical environment (partly shaped by President…

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