Active or passive management with far-reaching ESG integration

Both active and passive management with a far-reaching ESG integration. This enables us to provide our clients with a stable result in the long term, over multiple cycles. Our Sustainable Euro Bond Fund (ACTIAM Duurzaam Euro Obligatiefonds) gets four stars in the Morningstar rating (source: Morningstar, December 2021). Below you can find more information about a couple of our bond strategies.

Strategy: Euro Bonds – Investment Grade

Within the investment process of our Euro Bond funds, our objective is to realise the best possible long term return. We also want all our investments in the fund to perform better than the minimal criteria that ACTIAM sets on the ESG policy (Environmental, Social & Governance). ACTIAM's Fundamental Investment Principles are a guideline for these ESG criteria.

We have clear ambitions when it comes to the performance and ESG goals for our actively managed funds. Our goal is to achieve a return that is at least equal to the composite benchmark and an ESG score that exceeds the benchmark with a minimum of 10 basis points. The ESG score is a sustainability score that reflects a company's business policy and its actual behaviour. The higher the score, the better the CSR policy of a company. The targets of our core themes Climate, Water and Land apply to all funds.

Strategy: Alternative Fixed Income

Within 'alternative fixed income', we manage a wide range of fixed-income strategies. These include, amongst other things, private debt certificates and debt securities with a public guarantee, but also secured financing, mortgages and alternative credit; loans that are taken out on the private market, such as real estate loans, company funding, or credits. When managing these strategies, we utilise the premiums for liquidity and complexity, which fits well with the long-term horizon of pension funds and insurance companies.

"Thought leader" in green bonds

With green bonds, investors want to achieve a financial return while contributing to a better environment at the same time. We assess the goals of a green bond critically in order to prevent 'greenwashing' (pretend to be greener or more socially responsible). Early 2018, ACTIAM invested in a green bond issued by the Belgian state which contributes to the expansion and improvement of the Belgian railway network. With this investment, we stimulate the Sustainable Development Goal 11 (sustainable cities) of the United Nations and discourage car use. Furthermore, ACTIAM invested in green bonds issued by GasNatural, Barclays, Swedbank, AFD, BNG and Iberdrola as well as the first Green Dutch Government Bond (AAA rating) in May 2019. ACTIAM invests €1.4 billion in green bonds.

Pioneering role ACTIAM

We contribute actively to the further development of standards and initiatives in the area of green bonds. In June 2018, ACTIAM was elected to become a member of the Green Bond Principles (GBP) steering committee. This organisation sets guidelines for transparency and accountability with regards to green bonds.

Source: ACTIAM, as per end of December 2021.