ASSETS: Gains in green bond fund assets bounced back adding $40.9 million in net assets to end the month of July 2021 at $1,365.6 million. The seven green bond funds that make up the thematic segment, including five mutual funds and two ETFs, for a total of 22 funds/share classes, increased by 3% in July, in contrast to the previous month’s zero increase in net assets. About 93% of the July gain was attributable to just two funds. The Calvert Green Bond Fund alone added $31.6 million and the iShares Global Green Bond Fund (BGRN) added $6.5 million. Refer to Chart 1.
PERFORMANCE: Green bond funds posted an average gain of 0.98% in July, behind the 1.12% total return recorded by the Bloomberg Barclays US Aggregate Bond Index and 1.73% delivered by the ICE BofAML Green Bond Index Hedged US. The $219.7 million iShares Global Green Bond ETF was the best performer in July, posting a 1.74% gain and exceeding by 62 bps the next best performing Calvert Green Bond Fund I with its 1.12% return. While green bond funds were challenged in July to outperform, their track record over the trailing 12-months is much stronger, beating both the Bloomberg Barclays US Aggregate Bond Index ICE BofAML Green Bond Index Hedged US. Refer to Table 1.
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