Waning investor appetite for sustainable investment funds has dampened ESG fund revenues for a second year running, with low single-digit increases marking an end to a boom that saw management fees increase by more than 300%.

According to exclusive data provided to Financial News by Fitz Partners, ESG bond funds in Europe generated $221m in revenue in 2024, representing a 2% increase on the previous year. The same increase was recorded by ESG focused equity funds, which brought in just over $1bn in management fees.