Netherlands-based asset manager NN Investment Partners (NN IP) announced today the launch of the NN (L) Sovereign Green Bond fund, offering investors a product with a specific focus on treasury and government-related bonds that aims to have a positive environmental impact through the projects that they finance.
According to NN IP, the new launch complements the company’s suite of green bond offerings, which now include offerings spanning aggregate, corporate, sovereign, and an option for a fund with a shorter duration. The company stated that with separate sovereign and green bond funds now offered, investors have maximum flexibility to select the building blocks they need to make their fixed income allocation more sustainable with a measurable and positive impact.
According to a recent NN IP report, the green bond market is expanding rapidly this year, with much of the growth being driven by the entrance of sovereign issuers. Several countries recently announced that they are entering the green bond market for the first time, including Germany, Italy and the UK.
Bram Bos, Lead Portfolio Manager Green Bonds at NN Investment Partners:
“I am proud to be part of the development of an asset class that will play a key role in financing climate change mitigation and supporting the environment. Whilst in the past, investor demand for green bonds mainly came from impact investors, we now see more typical fixed income investors allocating to green bonds as well. These investors are looking to make their portfolio more sustainable without sacrificing financial performance. Offering a broad range of green bond strategies makes this even easier, as it allows them maximum flexibility to allocate to green bonds that replicate the characteristics of traditional bonds in their portfolio.”