The iShares MSCI Asia ex Japan Climate Action ETF led the outflows at $1.1t.

Singapore led the decline in sustainable fund flows in the Asia ex-Japan region in the third quarter (Q3), recording net outflows of $1.1t (US$870m), according to a report by Morningstar.

The iShares MSCI Asia ex Japan Climate Action ETF led the outflows, recording $1.1t (US$880m) during the quarter.

Excluding China, the region saw $184m (US$144m) in net outflows in Q3, partly offset by Taiwan, which was the region’s largest source of inflows at $998m (US$779m).

South Korea followed Singapore, with $324m (US$253m) in net outflows. Separately, Japan posted $261m (US$204m) in net outflows, its 17th consecutive quarter.

China remained the only source of new fund launches in Asia ex-Japan, with seven new funds.

Globally, sustainable funds attracted an estimated $8.3b (US$6.5b) in net inflows in Q3, excluding China. Sustainable fund assets fell to an estimated $4.9t (US$3.8t), from a revised $5t (US$3.9t) at the end of Q2, despite positive net inflows.