Dutch asset manager NN Investment Partners has launched the NN (L) Patrimonial Balanced European Sustainable fund.
The fund has been launched with around €100m in assets under management.
This actively managed sustainable multi-asset strategy invests in a diversified portfolio of European equity and Euro denominated fixed income instruments.
NN IP implements exclusions to determine the eligible sustainable investment universe of the fund.
Depending on the asset class, a specific inclusion approach, mixing ESG and financial criteria, is used to select the best ideas.
In addition, the strategy is managed based on a balanced risk profile: 50% equity and 50% bonds, with a bandwidth of +10%.
The benchmark of the fund is 50% MSCI Europe (net) + 50% Barclays Euro Aggregate.
“Mainstream indices are used in the composite benchmark to underpin our belief – founded on proprietary and public research – that implementing ESG criteria can enhance performance instead of eating into performance,” said NN IP.
NN (L) Patrimonial Balanced Sustainable Fund is a sub-fund of the Luxembourg-domiciled Sicav NN (L) Patrimonial.
A number of share classes of the sub-fund are currently registered in the following markets: Luxembourg, Austria, Belgium, Czech Republic, Greece, Spain, France, Sweden, Slovakia and Chile.
Siu Kee Chan, senior portfolio manager, multi-asset, commented: “Avoiding controversial names and selecting companies that show improving ESG scores can improve investment returns. We believe that integrating ESG criteria offer an additional source of return.”
As of 30 September 2016, NN IP managed €199bn in assets.