Offering Specialised SRI Funds
Our asset manager, NN Investment Partners, is meeting the growing demand for products that generate good financial returns, alongside care for society and the environment, through specialised funds and mandates. Assets under management in all their sustainable equity and fixed income products have grown to EUR 5 billion by year-end 2016.
NN Investment Partners has a long history in SRI investing, with its flagship Luxembourg and Dutch domiciled NN Global Sustainable Equity Funds offered since 2000. These focus on companies with sustainable business models, making use of both best-in-class and exclusionary criteria. In 2013, we launched the NN European Sustainable Equity fund, which is based on a successful strategy that we have managed for an institutional client since 2005.
On the fixed income side, our NN Euro Sustainable Credit (Excluding Financials) fund started in December 2011. This strategy excludes investments in companies with controversial ESG behaviours and also excludes a number of controversial activities. It is an investment-grade, non-financial focused corporate credit strategy, benchmarked against the Bloomberg Barclays Euro Aggregate Corporate Ex Financials index. In October 2014, we also launched the NN Euro Sustainable Credit (Including Financials) fund, which uses the regular Bloomberg Barclays Euro Aggregate Corporate index as a benchmark.
A multi-asset sustainable balanced fund, the NN Patrimonial Balanced European Sustainable, was launched in December 2016. The fund invests in a diversified portfolio of sustainable European equity and Euro denominated fixed income instruments. It makes use of an exclusionary approach. Furthermore, depending on the asset class, a best-in-class approach is also used to select companies that show improving ESG scores.
NN Investment Partners also offers impact investment strategies that aim to generate a measurable positive impact on society and/or the environment alongside a financial return.
The NN Euro Green Bond fund, launched in February 2016, offers investors the opportunity to invest with a direct and measurable impact on the environment. It invests in a portfolio of green bonds of high quality mainly denominated in Euro. The strategy aims to ensure that investments are truly green by making an own and independent assessment of adherence to the Green Bond Principles. Furthermore, issuers are screened using exclusionary screening. Issuers with severe environmental, social and governance (ESG) controversies or poor ESG ratings and policies are avoided.
In 2016 a new listed equity impact strategy was also launched, NN Global Equity Impact Opportunities. This strategy aims for financial, social and environmental returns through investments in listed equities of companies that have a positive impact. It also endeavours to measure the social and environmental contribution of the portfolio securities, and engage with companies to help them make a growing impact. With the use of an in-house database, specifically designed for Impact investing, we identify stocks that have material exposure to three main themes: Diminish Stress on Ecosystems, Health & Well-being and Fulfilment of Lives.
Finally, NN Investment Partners offers clients the opportunity to set up SRI mandates according to their specific sustainability preferences and investment beliefs; tailored SRI mandates have been managed since 2005. For example, since 2015 NN Investment Partners has been mandated to manage a EUR 0.9 billion money markets portfolio that invests in sovereign and government-related issues using ESG scores to influence model portfolio and allocation, as well as exclusionary screening.
More information on NN Investment Partners' specialised SRI products and services can be found in the 'responsible investing' section on www.nnip.com.