NN IP (NN Investment Partners) has started to include green bonds in a recently launched sustainable multi-asset fund.

The NN (L) Patrimonial Balanced European Sustainable fund was launched on December 2016. After initial interest from retail and institutional investors was observed, NN IP has added a sub-strategy dedicated to green bonds, focusing on those issued by sub-sovereigns and supranationals.

To ensure the investments are truly green, and not green washed, they independently assess the adherence to the Green Bond Principles of the International Capital Market Association, and apply an additional issuer screening on environment criteria.

Siu-Kee Chan, senior portfolio manager, multi-asset, NN IP, says, “By adding this strategy investors also make a direct and measurable impact on the environment without any additional costs as these bonds are priced as non-green bonds, issued by the same issuer. We also intend to provide our clients with impact reporting. This will add to transparency and will show for example how much annual greenhouse gas emissions will be avoided per euro invested.”