By Senad Karaahmetovic
According to Bank of America analysts, global ESG bond funds attracted $7.1 billion in January, which marks the highest monthly inflow since November 2021.
ESG inflows accounted for 10% of total inflows, analysts added. In the United States, ESG bond funds attracted a monthly inflow of $867M in January after recording outflows of $757M in December 2022.
“Non-ESG funds experienced a historical half a trillion of outflows last year and rebounded strongly in January, with an inflow of $75bn. Cumulative inflows to ESG bond funds globally reached an all-time high of $239bn, up by 9.6% YoY,” the analysts added.
As far as Europe is concerned, monthly inflows into ESG bond funds were $3.6B, which marks half of the global inflow.
“ESG inflows accounted for 26% of total inflows, which is also the highest percentage recorded across all regions. However, the percentage of ESG funds dropped slightly by 0.4 percentage points from last month,” analysts added.
Overall, assets under management (AUM) in global ESG bonds funds are up 28% in the last 2 years.