Euro Green Bond


Strategy description

The Euro Green Bond strategy mainly invests in a portfolio of Global green bonds of high quality (with a rating of AAA to BBB-) mainly denominated in Euro. Green bonds are bond instruments where the proceeds will be applied to finance or re-finance in part or in full new and/or existing projects that are beneficial to the environment. The strategy may invest in bonds with a higher risk (with a quality rating lower than BBB-) up to 10% of its net assets. To determine our eligible universe, we check if the selected bonds adhere to the Green Bond Principles as formulated by the International Capital Market Association. Furthermore issuers are screened using exclusionary screening. Issuers with serious and structural issues concerning environmental controversies are excluded.

Objective

We actively manage the fund with a focus on bond selection. We aim to beat the performance of the Bloomberg Barclays MSCI Euro Green Bond Index.

Key information


Investment objective Outperform the Bloomberg Barclays MSCI Euro Green Bond Index
Benchmark Bloomberg Barclays MSCI Euro Green Bond Index
Investment universe • Global Green Bonds, according to NN IP’s interpretation of the Green Bond Principles

• Allocations to opportunities in non-euro denominated issues (max 30%; to be hedged)
Rating Max 10% can be invested in sub-investment grade positions (BB+,BB,BB-)
Duration Max. 1 yr. active duration position versus the benchmark
Currency No currency risk versus the benchmark, hedging of non-EUR exposures


Robert Williams

Robert Williams

Head of Business Development

+352 2463 3741

robert.williams@nnip.com
Randy Jonathans

Randy Jonathans

Senior Business Development Manager

+352 2463 5732

randy.jonathans@nnip.com
Amel Marzoug

Amel Marzoug

Senior Marketing Manager

+352 2463 9886

amel.marzoug@nnip.com

Key elements

  • Investments with a direct and measurable impact on the environment
  • Independent assessment of adherence to the Green Bond Principles
  • Exclusionary issuer screening on environmental criteria
  • In-house fundamental analysis
  • First benchmarked and actively managed green bond strategy

Documents

Once the eligible universe is determined, we combine our analysis on specific issuers of bonds with a broader market analysis to construct the optimal portfolio. We aim to exploit differences in valuations of issuers of bonds within sectors and differences in valuations between sectors and different quality segments (ratings). As issuer specific risk is an important driver of performance, we subject all issuers in the investable universe to an in-depth analysis of business and financial risk.


Robert Williams

Robert Williams

Head of Business Development

+352 2463 3741

robert.williams@nnip.com
Amel Marzoug

Amel Marzoug

Senior Marketing Manager

+352 2463 9886

amel.marzoug@nnip.com
Randy Jonathans

Randy Jonathans

Senior Business Development Manager

+352 2463 5732

randy.jonathans@nnip.com

Key elements

  • Investments with a direct and measurable impact on the environment
  • Independent assessment of adherence to the Green Bond Principles
  • Exclusionary issuer screening on environmental criteria
  • In-house fundamental analysis
  • First benchmarked and actively managed green bond strategy

Documents

Bram Bos

Bram Bos

Lead Portfolio Manager

Experience since 2001

Alfred Meinema

Alfred Meinema

Co-lead Portfolio Manager

Experience since 2000

Robert Williams

Robert Williams

Head of Business Development

+352 2463 3741

robert.williams@nnip.com
Amel Marzoug

Amel Marzoug

Senior Marketing Manager

+352 2463 9886

amel.marzoug@nnip.com
Randy Jonathans

Randy Jonathans

Senior Business Development Manager

+352 2463 5732

randy.jonathans@nnip.com

Key elements

  • Investments with a direct and measurable impact on the environment
  • Independent assessment of adherence to the Green Bond Principles
  • Exclusionary issuer screening on environmental criteria
  • In-house fundamental analysis
  • First benchmarked and actively managed green bond strategy

Documents