Sustainable Investing 2026 mid-year Outlook: Catching our breath

Research evidence excerpt

Sustainable Investing 2026 mid-year Outlook: Catching our breath

J P M O R G A N Global Markets Strategy

23 June 2026

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Sustainable Investing 2026 mid-

year Outlook

Catching our breath

Flows and performance: respite, finally... Despite growing by 3% YTD to reach Sustainable Investing Research

ACUS$3.8tn in April, the market share of sustainable funds has declined further, to Virginia Martin Heriz

5.6% of global AuM. Relative performance has been broadly in line. In equities, (44-20) 7134-5197

European sustainable funds marginally outperformed European broad market virginia.martinheriz@jpmorgan.com

funds, while sustainable US funds underperformed slightly. In fixed income, J.P. Morgan Securities plc

sustainable fund performance was positive and roughly in line with the broader Arthur Pereira, CFA AC

market. As a result, sustainable flows in equities have shifted from outflows to (55-11) 4950-4101

arthur.pereira@jpmorgan.com

neutral, while fixed income continues to register inflows. Although outflows from Banco J.P. Morgan S.A.

sustainable equity seem to have stopped, we believe that material inflows will be AC Danielle Ward, CFA

contingent on relative performance improving in a consistent fashion. (44-20) 7742-7344

danielle.x.ward@jpmorgan.com

… But tech introduces downside risks for the performance of sustainable equity J.P. Morgan Securities plc

funds. Globally, sustainable funds often appear to be underweight technology Ethan Ross AC