2026 Q2 Global Sustainable Fund Report
Morningstar releases 2026 Q2 Global Sustainable Fund Report, which aims to summarize the asset size, fund flows, and regulation changes of global sustainability funds.
In 2026 Q2, global sustainable funds recorded a capital inflow of $3.7 billion, with the US sustainable fund market recording its first capital inflow since 2022.
Related Post: Morningstar Releases Q1 2026 Global Sustainable Fund Report
Global Sustainable Development Fund
The asset size of the global sustainable fund increased from $3.5 trillion in the first quarter to $3.7 trillion due to good market performance. In the second quarter, a total of 32 new sustainable funds were launched, including 16 in Asia, 13 in Europe, and 3 in the United States.
The European sustainable fund market recorded a capital inflow of $3.5 billion, lower than the $8.2 billion in the first quarter, with passive strategy funds recording a capital inflow of $11.4 billion and active strategy funds recording a capital outflow of $7.8 billion. From an asset class analysis, sustainable bond funds recorded a capital inflow of $14.4 billion, while sustainable stock funds recorded a capital outflow of $9.3 billion. As of the end of the second quarter of 2026, the assets of the European sustainable fund amounted to $3.1 trillion, accounting for 84% of the global total.
The US sustainable fund market recorded a capital inflow of $3 billion, ending 14 consecutive quarters of capital outflows, with passive strategy funds recording a capital inflow of $6.5 billion and active strategy funds recording a capital outflow of $3.6 billion. Sustainable bond funds and sustainable stock funds each recorded an inflow of $1.5 billion. As of the end of the second quarter of 2026, the assets of sustainable funds in the United States amounted to $398 billion, accounting for 11% of the global total.
Global Sustainable Fund Regulation
In March 2026, the Monetary Authority of Singapore (MAS) issued regulatory guidelines encouraging asset management companies to collaborate with investees in managing climate risk. The guidelines will come into effect in September 2027.
In May 2026, the US Securities and Exchange Commission proposed revoking the 2024 climate disclosure rules, allowing listed companies to only be bound by principal disclosure requirements.
In June 2026, the European Union planned to establish a 70% investment threshold for the three sustainable fund categories under the Sustainable Finance Disclosure Regulation (SFDR) and remove some Principal Adverse Impact to reduce the burden on asset management companies.
In June 2026, the Asset Management Association of China issued new regulations on sustainable investment strategies for funds, requiring that funds using sustainable strategies must align at least 80% of their noncash assets with the sustainability goals declared by the fund, improve the transparency of sustainable funds, and reduce greenwashing risks.
Reference:
