ESG inflows may be slowing but the party is not over

According to our latest Fund Flow Index (FFI) figures, ESG funds in the UK suffered their second-worst month on record in March 2023, attracting just £219m, which is two-thirds less than the monthly average over the last three years. Inflows into ESG funds are slowing down for several reasons. Firstly, ESG funds did not deliver positive returns last year, with Bloomberg noting that the ten largest ESG funds by AUM reported double-digit losses, with eight of them underperforming the S&P 500, which fell by 14.8%. Investors have also been deterred from allocating into ESG funds follow...