Sustainable Funds Mandate

Investing in a better world

  • Strike the right investment balance between people, planet and society
  • Benefit from the expertise of sustainable fund managers
  • Invest in innovative companies

The Sustainable Funds Mandate explained

Choose the Sustainable Funds Mandate, if you want to invest in sustainable funds consisting of companies that want to do their bit for ‘people, the planet and society’. These funds work with themes such as climate change, the circular economy, human rights and social enterprise. We believe that sustainable investments are the future. Some of the things that make companies sustainable include innovation, careful use of raw materials and pollution reduction or better contact with people and recognising their opportunities and risks. Our asset managers select investments that are notable for both their sustainability and their financial return.

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How the Sustainable Funds Mandate works

The investments in the Sustainable Funds Mandate are selected by ABN AMRO Advisors, specialists in the selection of sustainable investment funds. These investments will be completely in line with your chosen risk profile, since a good global spread of the risks is also possible for sustainable investments.

More information

Features of the Sustainable Funds Mandate

If you select this mandate, our experts will invest in companies that are front-runners in striking and maintaining a balance between ‘people, the planet and society’ on your behalf. Your portfolio will primarily consist of sustainable investment funds and individual sustainable bonds, but will also include investments in an impact fund. Funds are always selected on the basis of your risk profile.

Who Portfolio Management is for
  • You want to invest more than €50,000.
  • You want to invest for an extended period.
  • You don’t want to have to worry about your investments.
  • You want to have your assets actively invested by the bank’s experts.
  • You are prepared to take a risk and you are aware of the fact that you could lose part of your initial investment.
Risks

You should only invest money that you do not need and that is surplus to your buffer for unforeseen expenses. While investments can be profitable, they are also associated with risks. You could lose all or part of your initial investment, so you need to be aware of this. Be sure to only invest in investment products that you understand.

If you use our Portfolio Management service, you won’t need to make any investment choices yourself, but you still need to understand the risks associated with investments.

When you get started with our Portfolio Management service, you will decide on your risk profile yourself, with advice from your Portfolio Advice Specialist. Our experts will then take care of buying and selling your assets, all in line with your risk profile.

You might also like to know the following:

  • A specialist department checks the investment risks in your portfolio every day. The daily operational processes needed to manage your portfolio comply with the highest European standards (ISEA 3402).
  • The investments in your portfolio are legally separate from ABN AMRO. Since they are held in your name, they are your property, and will therefore be safe in the unlikely event that ABN AMRO files for bankruptcy.
Terms and conditions

Read the investment terms and conditions.

Fees

Fees that you pay to us

You pay us a fee for our services, which include management of your portfolio and ongoing advice. This is an ‘all-in’ fee, so you will not be charged any extra for withdrawals, or changes to your mandate or risk profile. Nor will you be charged if you decide to stop using our Portfolio Management services altogether. The exact fee you pay depends on your risk profile and will be between 1.21% and 1.39% of your invested assets each year (incl. 21% VAT).

Fees that you pay to third parties

You pay a fee for investment funds run by external fund managers. Some of the funds are run by ABN AMRO, in which case ABN AMRO is also the fund provider. These fees are also known as ongoing charges and they are paid to managers to cover the execution of investments and administration costs. You do not need to pay the ongoing charges separately, as they are included in the price of each investment fund.

Portfolio Management fee sheet

Calculation example

Elroy invests using the Portfolio Management Sustainable Funds Mandate. He has a moderately defensive risk profile and his investment portfolio is worth €100,000. In 2018, his total annual fees were roughly as follows:

Type of fee Amount Percentage
All-in fee (including VAT) € 1,271 1.27%
Ongoing charges € 410 0.41%
Total fees and charges € 1,681 1.68%
Return - € 3,519 - 3.52%
Net return - € 5,200 - 5.20%

Source: ABN AMRO Portfolio Management, total return from 01/01/2018 to 31/12/2018 inclusive. These are the model portfolio results, which may differ from the return on each individual customer portfolio. The value of your investments can vary. Past results are not indicative of future results.

Actual returns

Actual returns after deduction of fees

This chart shows the actual net returns gained over the last 5 years by customers using the Sustainable Funds Mandate.

afbeelding_kenmerken_graph proceeds  


Risk 2014 2015 2016 2017 2018 since 2014
Defensive 5.9% 2.2% 0.3% 1.9% -3.9% 6.3%
Moderately defensive 7.2% 4.4% 0.3% 3.4% -5.2% 10.2%
Moderately aggressive 8.2% 7.1% 0.4% 5.6% -6.8% 14.7%
Aggressive 9.3% 9.1% 0.5% 7.4% -8.5% 17.7%
Very aggressive 9.5% 10.5% 0.4% 8.6% -9.4% 19.6%

Source: ABN AMRO Portfolio Management, total return from 01/01/2018 to 31/12/2018 inclusive. 

Returns after deduction of all fees, based on the geometric mean calculation. These are the model portfolio results, which may differ from the return on each individual customer portfolio. The value of your investments can vary. Past results are not indicative of future results.

Available investments

A global range of sustainable investment funds, as well as sustainable individual bonds and other sustainable investments. The investments are selected by ABN AMRO Advisors.

  • Stock funds
    Stock funds invest in a certain region or focus on a certain type of company, such as companies with potential for growth that meet our sustainability criteria.
  • Bonds
    You can choose to invest part of your portfolio in bonds, which have a relatively low risk. You can choose between bond funds and individual bonds. The bonds we offer have varying credit ratings and terms.
  • Other investments
    This category currently consists of an impact fund that invests in things like microcredit, renewable energy projects and loans for students from developing countries. We also invest in the FMO Impact Fund.
    Impact funds are funds in which the balance between people, the planet and society is considered to be just as important as aiming for financial returns. The investments are often made with this goal in mind.
  • Liquid assets
    Liquid assets are held in an account and you receive interest on them. This account is covered by the deposit insurance scheme.
Investment style

Our investment experts ensure that your portfolio is spread in line with your risk profile. The exact components of your portfolio will depend on factors such as the investment vision of our economists and other market specialists. This vision is verified on a regular basis and updated where necessary, and it determines the spread across countries, sectors, regions and themes. A sound spread will give you a greater chance of returns in the long term.

Risk profile

ABN AMRO has five different risk profiles for its Portfolio Management service, ranging from a low-risk profile (defensive) to a very high-risk profile (very aggressive). Each risk profile has its own portfolio model, which shows you how we recommend that you spread your investments across shares, bonds, alternative investments and liquid assets. 

Once you and your Portfolio Advice Specialist have decided on your risk profile, we will be able to put together an appropriate investment portfolio and immediately give you an idea of its impact on your investment returns. 

Find out more about the risk profile

Keep track of your invested assets

Your Portfolio Advice Specialist will meet with you yearly to discuss your portfolio, but you don’t have to wait until then to find out more. We will continuously update you on your portfolio, returns and investment policy in various ways:

  • Investment report
    This quarterly report will give you more information on the following:
    • Your actual return, compared with your profile benchmark
    • Transactions made in the past quarter
    • The spread over various asset categories
    • The fees you have paid for Portfolio Management (Vermogensbeheer)
    • An explanation of the investment policy in the past quarter
  • Internet Banking
    Internet Banking lets you monitor your investment portfolio value, transactions and actual returns 24 hours a day, 7 days a week.
  • Digital Portfolio Management newsletter 
    Every month, we will send you a digital newsletter explaining our specialists’ investment choices.
  • Annual Statement
    The bank will send you an annual statement for tax purposes, specifying the value of your investments that you will need to state on your tax return.
Deposits and withdrawals

Our Portfolio Management service (Vermogensbeheer) takes care of your assets for an extended period. You can make deposits or withdrawals without any extra charge, but please be aware that they may have an impact on whether or not you achieve your investment goals. Be sure to get advice from your Portfolio Advice Specialist before taking action.

Termination

You can stop using our Portfolio Management service (Vermogensbeheer) whenever you wish without having to pay any termination fees.

More information

If you select this mandate, our experts will invest in companies that are front-runners in striking and maintaining a balance between ‘people, the planet and society’ on your behalf. Your portfolio will primarily consist of sustainable investment funds and individual sustainable bonds, but will also include investments in an impact fund. Funds are always selected on the basis of your risk profile.

  • You want to invest more than €50,000.
  • You want to invest for an extended period.
  • You don’t want to have to worry about your investments.
  • You want to have your assets actively invested by the bank’s experts.
  • You are prepared to take a risk and you are aware of the fact that you could lose part of your initial investment.

You should only invest money that you do not need and that is surplus to your buffer for unforeseen expenses. While investments can be profitable, they are also associated with risks. You could lose all or part of your initial investment, so you need to be aware of this. Be sure to only invest in investment products that you understand.

If you use our Portfolio Management service, you won’t need to make any investment choices yourself, but you still need to understand the risks associated with investments.

When you get started with our Portfolio Management service, you will decide on your risk profile yourself, with advice from your Portfolio Advice Specialist. Our experts will then take care of buying and selling your assets, all in line with your risk profile.

You might also like to know the following:

  • A specialist department checks the investment risks in your portfolio every day. The daily operational processes needed to manage your portfolio comply with the highest European standards (ISEA 3402).
  • The investments in your portfolio are legally separate from ABN AMRO. Since they are held in your name, they are your property, and will therefore be safe in the unlikely event that ABN AMRO files for bankruptcy.

Read the investment terms and conditions.

Fees that you pay to us

You pay us a fee for our services, which include management of your portfolio and ongoing advice. This is an ‘all-in’ fee, so you will not be charged any extra for withdrawals, or changes to your mandate or risk profile. Nor will you be charged if you decide to stop using our Portfolio Management services altogether. The exact fee you pay depends on your risk profile and will be between 1.21% and 1.39% of your invested assets each year (incl. 21% VAT).

Fees that you pay to third parties

You pay a fee for investment funds run by external fund managers. Some of the funds are run by ABN AMRO, in which case ABN AMRO is also the fund provider. These fees are also known as ongoing charges and they are paid to managers to cover the execution of investments and administration costs. You do not need to pay the ongoing charges separately, as they are included in the price of each investment fund.

Portfolio Management fee sheet

Elroy invests using the Portfolio Management Sustainable Funds Mandate. He has a moderately defensive risk profile and his investment portfolio is worth €100,000. In 2018, his total annual fees were roughly as follows:

Type of fee Amount Percentage
All-in fee (including VAT) € 1,271 1.27%
Ongoing charges € 410 0.41%
Total fees and charges € 1,681 1.68%
Return - € 3,519 - 3.52%
Net return - € 5,200 - 5.20%

Source: ABN AMRO Portfolio Management, total return from 01/01/2018 to 31/12/2018 inclusive. These are the model portfolio results, which may differ from the return on each individual customer portfolio. The value of your investments can vary. Past results are not indicative of future results.

Actual returns after deduction of fees

This chart shows the actual net returns gained over the last 5 years by customers using the Sustainable Funds Mandate.

afbeelding_kenmerken_graph proceeds  


Risk 2014 2015 2016 2017 2018 since 2014
Defensive 5.9% 2.2% 0.3% 1.9% -3.9% 6.3%
Moderately defensive 7.2% 4.4% 0.3% 3.4% -5.2% 10.2%
Moderately aggressive 8.2% 7.1% 0.4% 5.6% -6.8% 14.7%
Aggressive 9.3% 9.1% 0.5% 7.4% -8.5% 17.7%
Very aggressive 9.5% 10.5% 0.4% 8.6% -9.4% 19.6%

Source: ABN AMRO Portfolio Management, total return from 01/01/2018 to 31/12/2018 inclusive. 

Returns after deduction of all fees, based on the geometric mean calculation. These are the model portfolio results, which may differ from the return on each individual customer portfolio. The value of your investments can vary. Past results are not indicative of future results.

A global range of sustainable investment funds, as well as sustainable individual bonds and other sustainable investments. The investments are selected by ABN AMRO Advisors.

  • Stock funds
    Stock funds invest in a certain region or focus on a certain type of company, such as companies with potential for growth that meet our sustainability criteria.
  • Bonds
    You can choose to invest part of your portfolio in bonds, which have a relatively low risk. You can choose between bond funds and individual bonds. The bonds we offer have varying credit ratings and terms.
  • Other investments
    This category currently consists of an impact fund that invests in things like microcredit, renewable energy projects and loans for students from developing countries. We also invest in the FMO Impact Fund.
    Impact funds are funds in which the balance between people, the planet and society is considered to be just as important as aiming for financial returns. The investments are often made with this goal in mind.
  • Liquid assets
    Liquid assets are held in an account and you receive interest on them. This account is covered by the deposit insurance scheme.

Our investment experts ensure that your portfolio is spread in line with your risk profile. The exact components of your portfolio will depend on factors such as the investment vision of our economists and other market specialists. This vision is verified on a regular basis and updated where necessary, and it determines the spread across countries, sectors, regions and themes. A sound spread will give you a greater chance of returns in the long term.

ABN AMRO has five different risk profiles for its Portfolio Management service, ranging from a low-risk profile (defensive) to a very high-risk profile (very aggressive). Each risk profile has its own portfolio model, which shows you how we recommend that you spread your investments across shares, bonds, alternative investments and liquid assets. 

Once you and your Portfolio Advice Specialist have decided on your risk profile, we will be able to put together an appropriate investment portfolio and immediately give you an idea of its impact on your investment returns. 

Find out more about the risk profile

Your Portfolio Advice Specialist will meet with you yearly to discuss your portfolio, but you don’t have to wait until then to find out more. We will continuously update you on your portfolio, returns and investment policy in various ways:

  • Investment report
    This quarterly report will give you more information on the following:
    • Your actual return, compared with your profile benchmark
    • Transactions made in the past quarter
    • The spread over various asset categories
    • The fees you have paid for Portfolio Management (Vermogensbeheer)
    • An explanation of the investment policy in the past quarter
  • Internet Banking
    Internet Banking lets you monitor your investment portfolio value, transactions and actual returns 24 hours a day, 7 days a week.
  • Digital Portfolio Management newsletter 
    Every month, we will send you a digital newsletter explaining our specialists’ investment choices.
  • Annual Statement
    The bank will send you an annual statement for tax purposes, specifying the value of your investments that you will need to state on your tax return.

Our Portfolio Management service (Vermogensbeheer) takes care of your assets for an extended period. You can make deposits or withdrawals without any extra charge, but please be aware that they may have an impact on whether or not you achieve your investment goals. Be sure to get advice from your Portfolio Advice Specialist before taking action.

You can stop using our Portfolio Management service (Vermogensbeheer) whenever you wish without having to pay any termination fees.

image not availabale

Your adviser is here for you

If you have any questions or simply want to know how your investments are doing, don’t hesitate to call your Investment Adviser — he or she would be happy to talk things through with you. Stay up to speed at all times, and leave the rest to us.