Renewables funds see record outflows as rising rates, costs hit shares

Investors ditched renewable energy funds at the fastest rate on record in the three months to end-September as cleaner energy shares took a beating from higher interest rates and soaring material costs, which are squeezing profit margins.

Renewable energy funds globally suffered a net outflow of $1.4 billion in the July-September quarter, the biggest ever quarterly outflow, according to LSEG Lipper data.

However, the outflows only partially reversed the trend for the first half of 2023 when investors added a net $3.36 billion, the data showed.