Hundreds of ESG Funds Are Being Wound Down, Morningstar Says (1)

Asset managers in Europe and the US have spent 2024 winding down hundreds of ESG funds, as the investment strategy continues to bump up against regulatory headwinds.

In the third quarter alone, European investment firms liquidated or merged 102 funds touting sustainable goals, bringing the total to 349 this year, according to a Morningstar Inc. analysis of the market published on Thursday.

That puts 2024 on track to surpass last year’s 351 ESG fund closures in Europe. In the US, 12 funds were liquidated, including five managed by BlackRock Inc. And more upheaval is likely to be ahead, as new ...