BloombergNEF's latest Energy Supply Fund Ratio (ESFR) report shows that public market funds enabled 80 cents of low-carbon capex for every dollar spent on fossil fuels in 2025, up from 0.73 in early 2024. The rise is driven by increased spending on power grids and renewables among portfolio companies, though the ratio remains below what is needed for net-zero emissions. Fixed income and private market funds show stronger bias toward clean energy, with credit funds at 1.2 and private markets at 1.2, while equity funds lag at 0.7. Passive index funds, especially those tracking the S&P 500, limit manager influence due to index composition changes. The report highlights that thematic funds offer higher ratios but manage far less capital.
