New York | Global investors are turning their backs on sustainably focused stock funds, as poor performance, scandals and attacks from US Republicans hit enthusiasm for a much-hyped sector that has pulled in trillions of dollars of assets.
Clients have withdrawn a net $US40 billion ($60 billion) from environmental, social and governance (ESG) equity funds this year, according to research from Barclays, the first year that flows have trended negative. Redemptions, which include a record monthly net outflow of about $US14 billion in April, have been widespread across all main regions.
