Morningstar has released its Global Sustainable Fund Report, reporting that in the fourth quarter of 2025, there were 40 new sustainable funds added globally, the lowest among the twelve quarters since 2023, with 22 new funds added in Europe and only one new fund added in the US.

As of the fourth quarter of 2025, there are a total of 7,064 sustainable funds worldwide, with Europe having the highest number at 5,231, accounting for 74 per cent. The total assets of sustainable funds in Europe and the United States are relatively high, reaching $3.3tr and $368bn respectively.

As funds close, the total number of such funds has seen a reduction on some regions as the concept faces criticism on two fronts: that funds are not always aligned with all ideas of sustainability (greenwashing or by definitions) and that they are not producing returns in a more aggressive market.

---