NN Investment Partners (NNIP) has strengthened its growing expertise in the green bond territory with the launch of a short-duration green bond fund.
Adding to its existing €1 billion range of green bond funds, the new fund applies the same strategy as the NN (L) Green Bond fund but with a shorter duration of two years.
Given the short duration, the group expects the fund to appeal to investors who want to protect their portfolio against rising interest rates while continuing to act urgently on climate change.
In a statement, the Dutch firm said that green bonds, which are bond instruments where the proceeds will be applied to financing new or existing projects that have a measurable positive impact on the environment, could present an attractive opportunity in the current markets.
Commenting on the new launch, Bram Bos, lead portfolio manager of green bonds at NNIP said: “For investors who want to prioritise sustainability, impact investing (including green bond investing) is the ultimate choice in responsible investment. It identifies not only qualitative but also quantitative proof that the investments contribute to global welfare.”
According to the group, NNIP is the largest market participant in terms of open-ended green bond funds, which it established three years ago.
Source: Citywire Selector