Sustainable and Impact Investing funds
Our asset manager, NN Investment Partners has been integrating ESG (Environmental, Social, Governance) factors into the investment process for over a decade. Today, ESG is integrated across all asset classes and Sustainable and Impact Investing strategies have grown to EUR 10.9 billion by year-end 2017.
Sustainable Investing funds
NN Investment Partners’ sustainable investing offering invest in companies with sustainable business models and include equity, fixed income, or multi-asset products.
- NN Investment Partners’ flagship Luxembourg and Dutch domiciled NN Global Sustainable Equity Funds have been offered since 2000. These focus on companies with sustainable business models, making use of 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.
- The NN Enhanced Index Sustainable Equity Fund (formerly called the Delta Lloyd ESG Fund and originally launched in 2011) is an enhanced index ESG fund. The fund aims to meet the financial returns of the benchmark MSCI World (Net) Index while enhancing the sustainable characteristics, by investing globally in companies that are part of this benchmark and meet our sustainability criteria.
Impact Investing funds
NN Investment Partners also offers Impact Investing funds investment strategies that aim to generate a measurable positive impact and a clear link to UN Sustainable Development Goals (SDGs).
- The NN Euro Green Bond fund, launched in February 2016, offers investors the opportunity to invest with a direct and measurable impact on UN SDGs. 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 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 and contribute direct and measurable to UN SDGs. 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: People, Planet and Prosperity.
- The NN FMO Emerging Markets Loans Fund, launched in 2018, offers institutional investors to co-invest alongside FMO, the Dutch development bank with more than 45 years of experience and as such a leading impact investor in emerging markets. The fund has a strong focus on supporting the UN SDGs. By investing in senior loans to financial institutions, renewable energy projects and agribusiness companies in emerging markets, it creates the opportunity to aim for a positive, measurable impact on society and economy where it matters most.
Finally, NN Investment Partners offers clients the opportunity to set up Sustainable or Impact Investing mandates according to their specific sustainability preferences and investment beliefs; tailored mandates have been managed since 2005.