UK investors pulled money from funds badged as sustainable or ethical at their fastest ever rate last month.
Cumulative outflows from ESG equity funds – investment products weighted towards companies that trumpet environmental, social or governance credentials – topped £1bn in the three months to July.
In July, the outflows hit £376m, the largest on record, according to the latest Fund Flow Index from Calastone, the global funds network.
It said enthusiasm for ethical investing had been challenged by growing scepticism and accusations of “greenwashing”.
