NN Investment Partners has launched the NN Social Bond fund.
NNIP says the fund primarily invests in global social bonds and money market instruments of high quality (AAA to BBB-) denominated in Euro, but can also include sustainability bonds that allocate at least half of the proceeds to social projects. Specifically, the fund is focused on investments in social bonds and sustainability bonds that allocate proceeds of social projects that promote affordable basic infrastructure such as water and sanitation, access to essential services in education and health, affordable housing, employment, food security, and socioeconomic advancement and empowerment.
Bram Bos, Lead Portfolio Manager Green, Social and Impact bonds, NN Investment Partners: “We are delighted to maintain our momentum in impact investing whilst simultaneously playing a role in financing initiatives that will aid social development. Social bond issuance picked up in 2020 and 2021, especially in financing social projects that focus on dealing with the long-term effects of the pandemic. During this time, the social bond market caught up with other impact bonds and now has a capitalization of more than EUR 400 billion, offering investment opportunities for a well-diversified social bond portfolio. In 2022, we expect an issuance of EUR 250 billion. Our outlook for growth opportunities is positive and we are looking forward to tapping into the social bond market and working towards a better future.”