BNP Clients Are Piling ESG Billions Into Money Market Funds (2)

BNP Paribas Asset Management says ESG clients have been piling into money market funds, drawn by the allure of stable returns in cash-like instruments.

There’s “lots of cash” to move around and clients are reacting to “the volatility of the market in general,” said Thibault Malin, an investment specialist at the fund management arm of Europe’s biggest bank.

The development coincides with an historic retreat from the more traditional ESG fund market, which has been plagued by lackluster returns. Combined with the uncertain outlook for global interest rates, ESG investors have been allocating an ever larger chunk of their ...