'Green' Funds Flush with New Cash, Challenges as Trump Era Dawns

Environmentally conscious investors are using their pocketbooks to protest President Donald Trump's plans to slash environmental regulations, fueling a rally in funds that only invest in companies that meet progressive criteria for sustainability.

From the start of November to the end of January, investors poured $1.8 billion into actively managed equities funds in the "socially responsible" category, according to Lipper data.  In the same period, there was a net outflow of $133 billion from funds that do not have environmental or social mandates.

Trump was elected president on Nov. 8.

Investors worried that Trump's policies may imperil causes they believe in are hoping an influx of flows will help keep companies alive.

"If clients see the federal government withdrawing from a space they think is important, they may actually be more active in wanting to enforce their views through the dollars allocated," said Vincent Reinhart, chief economist at Standish Mellon Asset Management.

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