M UpdateAsia Sustainability | Asia PacificSustainability Fund Flows Turn Positive in 4Q23Flows into Sustainability funds domiciled in APAC turned positive to US$1.6bn in 4Q23 (from outflows of US$0.8bn in 3Q23), but were still down by 53% YoY. Taiwan and Australia contributed to most inflows in 4Q23. Flows into Fixed Income funds rose by 9x YoY in 4Q23. M Morgan Stanley Asia Limited+Ehsernta FuEquity Strategist Ehsernta.Fu@morganstanley.com +852 3963-3711 Tim Chan, CFAEquity Strategist Tim.Chan@morganstanley.com +852 3963-4568 Morgan Stanley MUFG Securities Co., Ltd.+Naruko KuboEquity Strategist Naruko.Kubo@morganstanleymufg.com +81 3 6836-8433 Morgan Stanley Australia Limited+Rob KohEquity Analyst Rob.Koh@morganstanley.com +61 3 9256-8932 Morgan Stanley & Co. LLCStephen C ByrdEquity Analyst Stephen.Byrd@morganstanley.com +1 212 761-3865 Laura SanchezEquity Analyst Laura.Sanchez@morganstanley.com Carolyn L CampbellStrategist Carolyn.Campbell@morganstanley.com +1 212 761-3748 Brenda DuverceEquity Strategist Brenda.Duverce@morganstanley.com +1 212 761-4772 Jamil OhayiaResearch Associate Jamil.Ohayia@morganstanley.com +1 212 761-4776 Morgan Stanley & Co. International plc+Michael P CanfieldEquity Strategist Mike.Canfield@morganstanley.com +44 20 7425-1188 Rachel Fletcher, Ph.D.Equity Strategist Rachel.Fletcher@morganstanley.com +44 20 7677-4089 Arushi AgarwalResearch Associate Arushi.Agarwal1@morganstanley.com +44 20 7677-3944 Related Reports: Sustainability: Sustainable Trends: Sustainable Funds Quarterly Tracker: 4Q23 (5 Feb 2024) Exhibit 1:Flows into Sustainability funds domiciled in APAC turned positive to US$1.6bn in 4Q23 (from outflows of US$0.8bn in 3Q23). By category, flows into Fixed Income Sustainability funds domiciled in APAC came in highest at US$1.8bn in 4Q23 (from US$0.2bn in 4Q22) -4.0-2.0 - 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0Mar-21Jun-21Sep-21Dec-21Mar-22Jun-22Sep-22Dec-22Mar-23Jun-23Sep-23Dec-23Asia Pacific: Quarterly Sustainability Funds Flows by Type ($bn)EquityAllocationFixed IncomeOtherSource: Morningstar, Morgan Stanley Research. Updated as of 26 January 2024.Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research. Investors should consider Morgan Stanley Research as only a single factor in making their investment decision.For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report.+= Analysts employed by non-U.S. affiliates are not registered with FINRA, may not be associated persons of the member and may not be subject to FINRA restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account. Key TakeawaysFlows into Sustainability funds domiciled in APAC turned positive t...
