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Weekly Market Summary
Dec 15 to Dec 19, 2025
Extra Credit*
- Global sustainable mutual funds and exchange traded funds recorded approximately USD 55 billion in net redemptions during the third quarter of 2025. Most of these outflows were driven by withdrawals from several UK domiciled BlackRock funds, following a client pension fund’s decision to shift assets into customized environmental, social, and governance mandates also managed by BlackRock.
- When excluding the BlackRock funds, global sustainable funds still posted an estimated USD 7.2 billion in net outflows in the third quarter, compared with revised inflows of USD 6.2 billion in the prior quarter. Fixed income was the only asset class to attract new capital, recording roughly USD 12.5 billion in net subscriptions worldwide.
- Most funds removed “Environmental, Social, and Governance (ESG)” or the word “sustainable” from their names. Many, however, replaced these terms with “transition” or other labels that still signal differentiation and, in practice, the continued integration of ESG considerations. Common alternatives include “screened,” “select,” “committed,” “advanced,” and “tilt.” The majority of these updated labels have been applied to passive strategies, primarily to indicate ESG based exclusions, which remain appealing to certain investor segments.
Morningstar as of 12/14/25.
Previous reports
*Source: Morningstar®, Bloomberg, Credit Suisse. OAS is Options Adjusted Spread. 4-year discount margin is used for spread for bank loans. Yield quoted is yield-to-worst or equivalent calculation. YTD Low / High for yields are based on end of week and not intraday movements. Indexes and sub-indexes: Investment-grade corporates represented by Bloomberg US Corporate Bond Index. High-yield bonds represented by Bloomberg US Corporate High Yield Index. Bank loans represented by Credit Suisse Leverage Loan Index. The red and green arrows depicted under Yields, Option Adjusted Spreads, and Prices indicate a higher or lower value from the previous week.
Past performance does not guarantee future results. Index performance is not indicative of fund performance. Indexes are unmanaged and it is not possible to invest directly in an index.
Any discussion of individual companies is not intended as recommendation to buy, hold or sell securities issued by those companies. Aristotle Fund holdings can be found on the fund pages linked above.
Investors should consider a fund’s investment goal, risks, charges, and expenses carefully before investing. The prospectus and/or the applicable summary prospectus contain this and other information about the Fund and are available from AristotleFunds.com. The prospectus and/or summary prospectus should be read carefully before investing.
Investing involves risk. Principal loss is possible.
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