Original, independent, thought leadership

Green bond funds reverse course in July 2022

The Bottom Line:  Green bond funds reverse course in July 2022 while green bond volumes are are expected to benefit from the Inflation Reduction Act. July Summary Assets attributable to green bond funds, a segment consisting of four mutual funds and three ETFs, reversed a four-month decline in net assets largely due to capital depreciation.  […]

June commentary: green bond funds

The Bottom Line:  Green bond fund investors tested by sharp 12-month performance declines in a difficult environment as markets priced in higher interest rate increases. June Commentary The assets of dedicated green bond funds, a segment consisting of seven active and passively managed mutual funds as well as ETFs, declined by $50.7 million in June, […]

May commentary: green bond funds

The Bottom Line:  Green bond funds reversed a slide in net assets, helped by posting the narrowest average monthly total return performance drop this year. May Summary Dedicated green bond funds, which rebounded to seven funds on May 3rd upon the launch of the rebranded Franklin Municipal Green Bond ETF (FMLB)¹ that shifted $101.9 million […]

April commentary: green bond funds

The Bottom Line:  Green bond funds experienced modest outflows during a volatile month and while performance suffered in April, the segment, on average, held up. April Summary Modest outflows during a volatile month for both equities and bonds led to a net decline of $55.3 million in assets to $1.37 billion.  Excluded is the $101.9 […]

March commentary: green bond funds

The Bottom Line:  Difficult market conditions in the first quarter led to very poor monthly and quarterly performance results and reduced issuance of green bonds. Summary Green bond funds, consisting of active and passively managed green bond mutual funds and green bond ETFs, invest in “green” bonds whose proceeds are used principally for climate mitigation, […]

February commentary: green bond funds

The Bottom Line:  Green bond fund investors experienced disappointing near-term returns, but intermediate-term outcomes continue to flash green, especially if accompanied by positive environmental outcomes. Summary Green bond funds invest in “green” bonds whose proceeds are used principally for climate mitigation, climate adaptation or other environmentally beneficial projects, such as, but not limited to, the […]

January commentary: green bond funds

Sustainable Investing

The Bottom Line:  Green bond funds, ending January with $1.44 billion, experienced monthly net outflows for the second consecutive month coincident with total return declines. Summary Green bond funds, including green bond mutual funds and green bond ETFs, experienced monthly net outflows for the second consecutive month coincident with total return declines.  Net declines kicked […]

December commentary: Green bond funds

The Bottom Line: December redemptions still place green bond funds at new 2021 high of almost $1.5 billion while absolute total return performance results disappoint. Summary Withdrawals by institutional investors led to a net $9.4 million decline in the assets of green bond funds in December, bringing year-end total net assets to $1,480.8 million.  While […]

Research

Research and analysis to keep sustainable investors up to-date on a broad range of topics that include trends and developments in sustainable investing and sustainable finance, regulatory updates, performance results and considerations, investing through index funds and actively managed portfolios, asset allocation updates, expenses, ESG ratings and data, company and product news, green, social and sustainable bonds, green bond funds as well as reporting and disclosure practices, to name just a few.

A continuously updated Funds Directory is also available to investors.  This is intended to become a comprehensive listing of sustainable mutual funds, ETFs and other investment products along with a description of their sustainable investing approaches as set out in fund prospectuses and related regulatory filings.

Getting started

Many questions have surfaced in recent years regarding sustainable and ESG investing.  Here, investors and financial intermediaries will find materials that describe the various approaches to sustainable investing and their implementation.  While sustainable investing approaches vary and they have thus far defied universally accepted definitions, many practitioners agree that they fall into the following broad categories:  Values-based investing, investing via exclusions, impact investing, thematic investments and ESG integration.  In conjunction with each of these approaches, investors may also adopt various issuer engagement procedures and proxy voting practices.  That said, sustainable investing approaches will continue to evolve.

In addition to periodic updates regarding sustainable investing and how this form of investing is evolving, investors and financial intermediaries interested in implementing a sustainable investing approach will also find source materials that cover basic investing themes as well as asset allocation tactics.

Inesting ideas

Thoughts and ideas targeting sustainable investing strategies executed through various registered and non-registered sustainable investment funds and products such as mutual funds, Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs), closed-end funds, Real Estate Investment Trusts (REITs) and Unit Investment Trusts (UITs). Coverage extends to investment management firms as well as fund groups. 

Independent source for sustainable investment management company research, analysis, opinions and sustainable fund disclosure assessments