Highlights from Q1 2024
- Assets in Canadian sustainable funds hit an all-time high in 2024’s first quarter, registering C$4.6 billion in net new assets compared to the previous quarter, and standing at C$50.5 billion total assets.
- This quarter, six new RI products were launched, increasing from the four funds launched in the last quarter of 2023.
- At the end of 2024’s first quarter, CIFSC identified 355 mutual funds and exchange-traded funds that follow at least one of its six responsible-investment approaches.
Sustainable Fund Assets
Source: Morningstar Direct, Manager Research. Data as of March 31, 2024. Excludes funds of funds.
RI Fund Performance
Based on data provided by Morningstar, sustainable funds show mixed results compared to their conventional Morningstar peers, with 58% of sustainable funds landing in the bottom half of their respective peer groups:
- Allocation funds posted the strongest relative results, with 26% of sustainable funds ranking in their peer group’s top quartile.
- Canadian sustainable balanced funds struggled, with 67% landing in the bottom quartile.
Canadian Equity
Global Equity
US Equity
RI fund flows:
- Both active and passive sustainable funds saw inflows in the first-quarter 2024. Passive funds added more than active: CAD 116.3 million versus CAD 76.3 million.
- Europe, being the world’s largest market for sustainable funds, attracted USD 10.9 billion in the first quarter, more than double the subscriptions of the previous quarter. Contrarily, the United States experienced its worst-ever quarter, recording outflows of USD 8.8 billion.1
Sustainable Fund Flows
Source: Morningstar Direct, Manager Research. Data as of March 31, 2024. Excludes funds of funds.
-Canada Sustainable Funds Landscape 2023 in Review
1 Global Sustainable Fund Flows: Q1 2024 in Review by Morningstar
Note 1: For the purpose of this report, RI funds include those that are marketed as responsible investments with RI strategies/policies disclosed in regulatory documents. Average asset class return includes RI and non-RI funds. Returns for periods greater than one year are annualized. Excludes fund-of-funds.
Note 2: More information on the Canadian Sustainable Funds can be found in Morningstar Canada Sustainable Funds Landscape Report Q1 2024, uploaded on the RIA website.
Download Q1 2024 Highlights PDF.
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For more information about the Canada Sustainable Funds Landscape from Morningstar, click here.
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