ESG funds Q3 outflows 2025 totalled USD55bn, Morningstar reported, driven by UK-domiciled BlackRock fund redemptions linked to a pension client’s shift into custom mandates. Excluding those withdrawals, sustainable funds still recorded USD7.2bn in net outflows versus USD6.2bn of revised inflows in Q2. Europe (ex-BlackRock) lost USD3.1bn and the US posted a 12th straight quarter of withdrawals at USD5.1bn. Asia ex-Japan added USD1.6bn, mainly from South Korea, Thailand, and Ta