However, Europe saw its ESG fund inflows take a US$800 million hit, sliding from US$11.1 billion to US$10.3 billion – a disquieting trend, according to Morningstar. Asia, excluding Japan, also fell from US$3.1 billion to US$2.5 billion. Europe saw 102 sustainable funds being either closed or merged in Q3, bringing the total to 349 so far this year, while 113 products changed names – including 50 dropping ESG terms – with regulation driving the alterations, including the UK's Sustainability Disclosure Requirements. "The global flow picture for ESG funds is improving, but it hides nuances across geographies," said Hortense Bioy, Head of Sustainable Investing Research at Morningstar Sustainalytics. "Redemptions are declining in the US, Canada, and Japan, which can be seen as a positive development, but net inflows into ESG funds aren't increasing in Europe – the leading market."