Assets held by global funds with an environment, social and governance (ESG) mandate have not had a good Q1.
Several studies showed that there has been a decrease ifrom the same period in 2022.
This was also the findings from the the Association for Financial Markets in Europe report. It showed that global funds with an ESG mandate, including mutual funds and ETFs, had $7.9 trillion in the first quarter of 2013, a 10.7% year-on-year decrease, according to a report from T
AFME’s latest European ESG Finance quarterly data report noted that total assets increased 0.11% sequentially from the fourth quarter of last year.
“The marginal quarterly increase in global ESG funds was driven by higher asset valuations only partially offset by net outflows,” added AFME. “Net outflows from ESG funds accumulated a total of $27.1bn during the first quarter of 2023.”
Most asset classes did not exhibit significant changes during the quarter of this year according to the report. However, real estate declined 34% quarter-on-quarter and alternatives fell 22.4% over the same time period.
AFME also found that European ESG bond and loan issuance had a total of €156bn in proceeds in the first quarter of thai year, a decline of 4.3% year-on-year but an increase of 10.7% quarter-on-quarter. ESG bonds and loans include ESG-labelled bonds (proceeds-based), sustainable-linked bonds, transition bonds, green-linked loans and sustainable-linked loans.
“The quarterly increase was driven by ESG-labelled bonds, which accumulated €116bn in proceeds, the second-largest quarterly issued amount on record,” added the report.
The sovereign sector participated significantly in the green primary market in the first quarter, with the Government of Italy originating the largest single issue with a deal larger than €10bn. The European Commission, on behalf of the EU, issued the second-largest green bond of the quarter with a total amount of €6bn.
@Markets Media Europe 2023
