Off the wires: India raises $1bn from maiden green bond sale

India sold its first sovereign “green” bonds on Wednesday, a debut that was well-received by the market. In this short Off the Wire piece, EPFR’s Steven Xinlei Shen will look at investor sentiment towards Developed Markets (DM) and Emerging Markets (EM) Equity and Bond Funds with SRI/ESG mandates, expanding on Financial Times’s article, India raises $1bn in maiden green bond.


View from EPFR

Recent years have seen a significant increase overall in the number of SRI/ESG funds, but the trajectory has differed for EM and DM funds. While the new trend is already proving to be significant for asset markets in developed countries, it has had less of an impact when it comes to emerging markets. At the end of last year, the total AuM – assets under management – for all Developed Markets Equity and Bond Funds with SRI/ESG focus stood at $1.7 trillion. For all Emerging Markets Equity and Bond SRI/ESG Funds the total combined AuM was $163 billion.

Chart representing

From a flow perspective (measured as percentage of total AuM), however, it is EM Bond Funds that catch the eye with flows over the past five years a whopping 737% of their AUM on January 1, 2018. The other three asset classes are neck and neck in relative terms.

Investors have a clear preference for SRI/ESG focused bond funds. The fund flows quilt on the following page includes major asset class fund groups with SRI/ESG focus ranked by flows as percentage of AuM on a monthly basis. It seems SRI/ESG Bond Funds, especially funds with an Emerging Markets geographic mandate are climbing up the ranking. According to monthly data as of Dec 2022, Latin America, Asia ex-Japan and GEM SRI/ESG Bond Funds rank one, two and three among the asset classes.

Chart representing "Monthly data he asset classes"


Did you find this useful? Get our EPFR Insights delivered to your inbox.

Related Posts

Off the wires: Bitcoin is one year away from a major technical event. History suggests the start of another bull run

Off the wires: Bitcoin is one year away from a major technical event. History suggests the start of another bull run

Bitcoin’s next “halving” is expected to take place in 2024. These events take place when Bitcoin miners have added 210,000 “blocks” to the blockchain leger and are marked by a halving of the Bitcoins that miners get for adding each block. Given the implications for future supplies of Bitcoin, these ‘halvings’ usually push Bitcoin’s price significantly higher, both in the run up to the event and for several months afterwards. This time around seems – so far – to be conforming to the pattern: Bitcoin’s price has risen steadily in recent weeks.

Off the wires: US inflation falls to lowest level since May 2021

Off the wires: US inflation falls to lowest level since May 2021

According to CNN, annual inflation dropped in March 2023 for the ninth consecutive month, and grocery prices fell month-on-month for the first time since September 2020. While the CPI has cooled off – at least temporarily – investors are not treating the news as a green light for the road back to riskier asset classes. With fear far from banished, cash remains king.

When ETF flows confound expectations

When ETF flows confound expectations

From time to time, EPFR’s clients alert us to anomalous flows into exchange traded funds (ETFs) that occur on a specific day and for a specific fund. Given our awareness of these types of flows, and the granularity of our databases, EPFR’s quant team decided it was high time they dove into our ETF database and conducted a systematic analysis of these events.

Better, More Actionable Insights

Let us show you how EPFR can create value for your specific strategy


*Indicates required fields

By ticking this box, you agree to receive marketing communications from EPFR. You can review your email preferences upon submitting this form