Global sustainable funds reached $1.2 trillion in Q3 according to Morningstar.
The data comes from 3767 sustainable open-end funds and ETFs in Q3 2020. Morningstar found that sustainable funds hit a record high of $1.2 trillion, up 19% from Q2, with Europe hitting $1 trillion in assets. Net new fund inflows were up 14% in Q3 to nearly $81 billion with the US accounting for 12% and Europe 77%.
Q3 also saw the launch of 105 new sustainable funds bringing the number of sustainable fund launches in the first nine months of the year to 333 and the total of the European sustainable fund universe to a new record high of 2898.
Asset managers continued converted at least 32 conventional funds into sustainable funds. Twenty-nine of these were also renamed. Repurposed funds now account for 22% of the European sustainable fund universe.