Demand for UCITS bond funds that apply ESG tilts has been steadily rising, according to the European Fund and Asset Management Association (EFAMA), as investors poured €102bn (£85.8bn) into the investment vehicle last year.
The latest issue of EFAMA Market Insights series, ‘Sustainable UCITS Bond Funds for a Better Future', revealed sustainable UCITS bond funds attracted €33bn more than traditional UCITS bond funds last year, which took in net new money of €69bn. Net assets climbed to €621bn, representing 20% of total UCITS bond fund assets, while risk-adjusted returns continue to be higher than traditional funds. Fees on the investment vehicle were lower, according to EFAMA, with the average cost of a sustainable UCITS bond fund reaching 59 basis points in 2021, compared to 76 bps for traditional UCITS ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
