Fund Closures Keep Mounting in European Markets: ESG Investing

The market for ESG-focused funds keeps shrinking in Europe because of closures, mergers and renamings.

In the third quarter, 92 European sustainable funds were shut down, with 65 liquidations and 27 fund mergers, according to data compiled by Morningstar Sustainalytics. That compares with a total of 125 in the prior three months.

“This trend reflects the maturation of the sustainable-fund market, which has grown and become more competitive,” Morningstar wrote in its report. “Funds that struggle to attract assets or to deliver good returns are increasingly prone to closing. We view this as a natural evolution of the ...