Regulatory, economic uncertainties muddy 2023 demand outlook for ESG funds
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DESPITE keen interest in sustainable investing, persistent concerns about regulations and macroeconomic conditions paint an uncertain outlook for capital flows into environmental, social and governance (ESG) funds in 2023, market watchers said.
That wariness comes following a dismal 2022 for ESG funds in Asia, which saw net fund inflows plummet after years of growth as investor appetite cooled in North Asian markets.
A year to forget
Morningstar data showed that sustainable funds across the globe attracted US$147.6 billion of net new money over the first three quarters of the year, a drop of 72 per cent from US$528 billion over the same period in 2021.
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