Since its launch in 2010 Nikko Asset Management (Nikko AM) has raised almost £400m from institutional investors in Europe and the Middle East, as well as Japanese investors, through its groundbreaking World Bank green bond funds.
The UCITS-III, Nikko AM World Bank Green Fund was launched in February 2010 and is the first fund of its kind to invest up to 100 per cent of its portfolio in green bonds issued by the World Bank (International Bank for Reconstruction and Development). The fund is available to institutional investors in Europe and the Middle East, including financial groups, pension funds, sovereign wealth funds, banks, wealth managers and family offices. The fund is currently available in Sterling and US Dollar share classes.
The Luxembourg-domiciled fund has returned 11.6 per cent in its first 12 months (annualised as at 28 February 2011) versus the benchmark return (50 per cent Citigroup World Government Bond Index and 50 per cent JP Morgan Government Bond Index – Emerging Markets) of 9.68 per cent supported by conservative currency positioning.
The fund is actively managed by senior portfolio manager Justin Eeles alongside Stuart Kinnersley, Nikko’s European CIO. The investment team manages a diversified portfolio which invests 50/50 in developed and emerging markets. All proceeds of the green bonds support World Bank funded projects designed to tackle the causes and consequences of climate change in the developing world.
The World Bank issues green bonds in a range of developed and emerging market currencies which are selected by Nikko AM and based upon rigorous research. These bonds generally are of higher quality credit (AAA) than the underlying government bond, giving the fund an additional edge.
Kinnersley said, ‘We believe as the composition of global economy changes investors should have exposure outside of the ‘G3’ currencies, especially with emerging market currencies growing in strength. High running yields, together with strong positive fundamentals are a powerful combination for generating returns. The investment team’s focus is on constructing a portfolio of currencies which we believe will achieve capital growth and income over the mid-to long-term.’
Doris Herrera-Pol, global head of capital markets at the World Bank said, ‘World Bank green bonds offer investors an opportunity to support climate change mitigation and adaptation projects in a high grade fixed income product. Through Nikko AM’s innovative World Bank green bond funds, the product is now available more broadly, allowing more investors to be part of the climate change solution.’
The Nikko AM World Bank Green Fund is the sixth socially responsible and sustainable investment strategy launched by Nikko AM in the past 12 years.
Projects funded through the green bonds include alternative energy generation in rural areas of China; methane capture and biogas technologies; new energy efficient technologies for public buildings in Montenegro; renewable energy systems in Argentina, and reforestation and sustainable forest management in Mexico.
source: www.newenergyworldnetwork.com
The UCITS-III, Nikko AM World Bank Green Fund was launched in February 2010 and is the first fund of its kind to invest up to 100 per cent of its portfolio in green bonds issued by the World Bank (International Bank for Reconstruction and Development). The fund is available to institutional investors in Europe and the Middle East, including financial groups, pension funds, sovereign wealth funds, banks, wealth managers and family offices. The fund is currently available in Sterling and US Dollar share classes.
The Luxembourg-domiciled fund has returned 11.6 per cent in its first 12 months (annualised as at 28 February 2011) versus the benchmark return (50 per cent Citigroup World Government Bond Index and 50 per cent JP Morgan Government Bond Index – Emerging Markets) of 9.68 per cent supported by conservative currency positioning.
The fund is actively managed by senior portfolio manager Justin Eeles alongside Stuart Kinnersley, Nikko’s European CIO. The investment team manages a diversified portfolio which invests 50/50 in developed and emerging markets. All proceeds of the green bonds support World Bank funded projects designed to tackle the causes and consequences of climate change in the developing world.
The World Bank issues green bonds in a range of developed and emerging market currencies which are selected by Nikko AM and based upon rigorous research. These bonds generally are of higher quality credit (AAA) than the underlying government bond, giving the fund an additional edge.
Kinnersley said, ‘We believe as the composition of global economy changes investors should have exposure outside of the ‘G3’ currencies, especially with emerging market currencies growing in strength. High running yields, together with strong positive fundamentals are a powerful combination for generating returns. The investment team’s focus is on constructing a portfolio of currencies which we believe will achieve capital growth and income over the mid-to long-term.’
Doris Herrera-Pol, global head of capital markets at the World Bank said, ‘World Bank green bonds offer investors an opportunity to support climate change mitigation and adaptation projects in a high grade fixed income product. Through Nikko AM’s innovative World Bank green bond funds, the product is now available more broadly, allowing more investors to be part of the climate change solution.’
The Nikko AM World Bank Green Fund is the sixth socially responsible and sustainable investment strategy launched by Nikko AM in the past 12 years.
Projects funded through the green bonds include alternative energy generation in rural areas of China; methane capture and biogas technologies; new energy efficient technologies for public buildings in Montenegro; renewable energy systems in Argentina, and reforestation and sustainable forest management in Mexico.
source: www.newenergyworldnetwork.com
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