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Weekly Market Summary
Dec 8 to Dec 12, 2025
Extra Credit*
- Global Climate Fund assets hit record highs of USD 644 billion. Global assets in mutual funds and ETFs with a climate-related mandate rose by 8.5% in the first half of 2025, reaching USD 644 billion at the end of June. Europe, which accounts for 86% of climate fund assets, remains the primary growth driver, while China and the United States recorded more moderate increases.
- Climate Transition funds, those investing in or tilting toward companies better prepared for the low-carbon transition, grew by 16% in 1H 2025, totaling USD 318 billion globally. Green bond funds were another bright spot, with assets up 14% to USD 44 billion, matching the level of Clean Energy/Tech funds. The latter saw assets decline by 1.8%, despite strong performance following four years of poor returns.
- Investors allocated USD 2.5 billion to Climate Transition funds across all regions, making this category stand out amid broader climate fund outflows of USD 13.8 billion in 1H 2025. Nearly USD 12 billion was redeemed from Climate Solutions and Clean Energy/Tech funds. Despite a recovery in green energy stock prices, investor appetite remained muted against a backdrop of economic and regulatory uncertainties and escalating geopolitical tensions.
Morningstar as of 12/9/25.
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.
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