ESG funds have suffered their worst month for withdrawals on record as <a href="https://www.telegraph.co.uk/business/2023/05/24/ftse-100-markets-live-news-cpi-inflation/">market turmoil and rising inflation</a> prompt investors to focus on returns ahead of ethics.

Investors pulled £304m out of sustainable funds in May in the worst month of withdrawals on record for <a href="https://www.telegraph.co.uk/investing/news/ethical-investing-key-higher-returns-woke-nonsense/">the ESG (ethical, social and governance) sector</a>.

The surge in gilt yields following higher-than-expected inflation data pushed investors to overhaul their strategies and shed ethical equity funds as they chased higher returns.

Ethical equity funds ditched in favour of higher returns{ai:summary}<p>ESG funds see record withdrawal as investors prioritize returns over ethics, with £304m taken out in May due to market turmoil, rising inflation and a push to overhaul investment strategies. #economy</p>

Worst month ever for ESG funds as British investors pull £300m

Loading...