Japanese retail investors withdraw $4.5 billion from ESG mutual funds in 2023
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Japanese retail investors have withdrawn ¥660 billion ($4.5 billion) from ESG mutual funds in 2023, marking a significant increase from the ¥150 billion outflows in 2022, according to research firm Morningstar.
This shift is attributed to investors favoring mutual funds with specific investment themes over ESG funds.
While ESG funds experienced significant inflows of ¥1.8 trillion in 2021, the trend has reversed, with investors now showing more interest in areas such as foreign index funds.
The outflows have impacted the growth of the ESG industry, with no new ESG products launched between October and December 2023, according to Morningstar.
According to another report from Morningstar, climate-focused mutual fund investments in the US also dropped by 75% in 2023.
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