Global funds focused on companies that pledge better diversity across their ranks continue to be shunned by investors, with outflows accelerating from US funds last year amid a wider DEI backlash.

According to data from Morningstar, diversity funds globally recorded net outflows of $376m in 2024. While the redemptions were down from the $1.2bn investors withdrew in 2023, it marks the second consecutive year where money has been yanked from diversity-focused funds worldwide.