Flows into sustainable strategies slow as equities continue to suffer

Follows 62% drop in Q2

Net inflows into sustainable strategies cooled over July, as broader equities continued a trend of outflows, according to Morningstar’s latest fund flows report.

Sustainable funds ended July in positive territory, though their net flows compared with non-sustainable counterparts tightened over the period. Funds flowing into indexed sustainable strategies finished July at £251m, according to Morningstar data. This follows data published last month revealing flows into sustainable equity funds dropped by 62% in the second quarter of this year, amid market uncertainty headwinds. Broader equities continued their run of outflows over the month, though levels had slowed since May and June lows, with £2.7bn flowing out of equity strategies, adding to...