NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

By Caleb Mutua

Funds that buy debt designed to help society grew at a faster pace in the first half of the year than those that buy sustainable equity.

The COVID-19 pandemic has fueled demand for funds globally that invest in any sort of asset that can make the world better and fight the disease, according to Hortense Bioy, director of sustainability research for Europe, the Middle East, Africa, and Asia Pacific at Morningstar. Many investors are drawn to fixed-income funds in particular because bonds and loans can be clearly tied to projects with ESG aims, while equity can be harder to track that way, she said.

Photo courtesy of Usukhbayar Gankhuyag.