Fund manager NN Investment Partners (NN IP) has launched the Patrimonial Balanced European Sustainable fund, which aims to provide a responsible investment solution without sacrificing returns.
The fund reflects NN IP’s belief that the integration of environmental, social and governance (ESG) factors into all aspects of the investment process has now become “common sense”. The new fund therefore aims to invest responsibly in a diversified portfolio of European equity and euro-denominated fixed income instruments. It uses ESG and financial criteria to select the best ideas and is split 50:50 between bonds and equities, with a bandwidth of 10%. NN IP senior portfolio manager, multi-asset, Siu Kee Chan, commented: “Avoiding controversial names and investing in companies that show improving ESG scores are proven to show better investment returns. Therefore, we believe that integrating ESG criteria in this fund offers an additional source of return.”