Sustainable investing is no longer about trying to save the world, managers say
The Investment Association, a British fund trade body, said it now tracks 103 open-ended funds approved under the UK’s sustainability label, a small share of a retail market holding more than 4,000 funds.
Performance has been part of the drag.
Over the five years to July 2026, the broad MSCI ACWI index returned roughly 65 percent, against almost 56 percent for its socially responsible counterpart, LSEG data showed.
Morgan Stanley analysts said funds with a sustainable objective under EU disclosure rules beat conventional equity funds by 177 basis points in the quarter, helped by technology holdings, though they still trailed the broad index.
Faced with the political climate, many firms now frame their funds around resilience, energy security, and risk rather than saving the planet.
