NN Investment Partners (NNIP) has launched a short-duration green bond fund that selects bonds with two-year durations – a factor making it “uniquely positioned” among similar products, the firm said.
NNIP is looking to attract investors who want to act swiftly on climate change while seeking portfolio protection against rising interest rates using bonds with short durations.
The firm said durations in other green bond funds were typically five years or more.
The fund will apply the same strategy as the NN (L) Green Bond fund, which has outperformed the benchmark by 0.6% annually.
“For investors who want to prioritise sustainability, impact investing – including green bond investing – is the ultimate choice in responsible investment,” says Bram Bos, lead portfolio manager for green bonds at NN Investment Partners. “It identifies not only qualitative but also quantitative proof that the investments contribute to global welfare.”
Additionally, investors face no additional costs when investing in green bonds, Bos said. “In fact, allocation to green bonds enables investors to reduce the carbon footprint of their fixed income portfolios and enjoy better governance and greater transparency, without sacrificing liquidity and returns”.
A recent study of 15,000 companies by NN Investment Partners recently showed that around 19% are making a “positive impact” in accordance with the UN’s sustainable development goals. This was described as “surprisingly high” by the firm.
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