Dutch fund group NN Investment Partners and Irish Life Investment Managers have partnered to jointly manage a range of sustainable equity index strategies.
The strategies are designed to appeal to investors looking for lower cost equity funds that give consideration to ESG factors.
“We have seen significant growth in our indexation business over the past few years and these launches bring our overall indexation assets under management to over €50 billion,” said Shane Cahill, head of indexation business at ILIM (pictured).
“Our partnership with NN IP reflects the growing demand from clients for ESG investment options and allows us to expand our offering in this area.”
In announcing the launch, the companies confirmed plans to work together on ‘several initiatives’ which will combine NNIP’s ESG experience with ILIM’s experience as an indexation manager.
“Through this partnership we offer our clients attractively priced sustainable solutions that benefit from ILIM’s expertise in efficient, low-cost implementation of equity portfolios,” explained Jeroen Bos, head of specialised equity and responsible investing at NN Investment Partners.
“We ensure that the funds have a strong sustainability profile and do not invest in companies with serious ESG controversies (i.e. controversy scores 4 and 5).
“Our selection process also rewards companies for good governance and effective climate change policies. As a result, the funds have significantly smaller carbon footprints than traditional index investments.”
The news comes just three months after NN Investment Partners outlined a new engagement programme for investee companies in the energy sector.