Investing in innovative companies with ESG features

The portfolio managers of the ESG Investments Mandate make clear choices when compiling your sustainable investment portfolio.

• Shares
  The equity portfolio of the ESG Investments Mandate consists of 30 to 40 companies from developed markets. These are always companies that meet our criteria for sustainable business. For equities in emerging markets, we invest in investment funds. In these markets, (financial) reporting in the field of corporate social responsibility is often less readily available.
• Bonds
  With a bond loan, a good balance between return and risk is paramount. Spreading risk is also important to us. That is why our specialists opt for bonds with a high credit rating and different maturities. Government bonds from euro countries are preferred. In the bond category, we contribute to the development goals of the United Nations by investing in bonds from emerging countries.
• Other investments in the ESG Investments Mandate
  Alternative investments often react differently to market developments than equities and bonds. As a result, these can reduce the risk in your portfolio. The portfolio managers can invest in funds that invest in, for example, microfinance and alternative energy. We can also hold part of your assets in liquidities.

Information Card ESG Investments Mandate

This is what you pay us

You pay costs for our services, such as managing your portfolio. You do not pay any additional costs for, for example, withdrawing money, changing mandates or risk profile. If you wish to stop making use of Asset Management, you will not pay any additional costs either. What you pay depends on your risk profile: the costs amount to between 1.21% and 1.39% of your invested capital per year (incl. 21% VAT).

Management costs

If you opt for Asset Management, you pay management costs on the value of your investment portfolio. The management costs include all costs incurred by ABN AMRO. This concerns costs for:

• the management of your investment portfolio;
• the administration of your investment portfolio;
• the investment information you receive; and
• the transactions (in euros).

This is what you pay to other parties

You pay the charges incurred by an investment fund. The ongoing costs of an investment fund include, for example, administration costs, management costs, marketing and distribution costs. These costs are included in the investment fund’s progress and are determined by the investment fund itself. The ongoing costs can be found in the Key Investor Information Document (KIID) of the relevant investment fund.

Other examples of costs you pay to other parties are transaction costs in the fund, entry and exit costs and the effects of swing pricing. Please note: there may be other additional costs, therefore always refer to the Key Investor Information Document for the relevant product.

You can find more information about the costs here:

Information Card

You can find a cost overview of all our investment products here.

Source: ABN AMRO Asset Management, composite returns from 01/01/2023 to 31/12/2023. This concerns the results of the model portfolio, which may deviate from the returns of the individual customer portfolio. The value of your investments can fluctuate. Results achieved in the past offer no guarantee for the future.

Returns achieved after deduction of costs
This table gives you an overview of the net returns achieved in the past 5 years in the ESG Investments Mandate.

Source: ABN AMRO Asset Management, composite returns from 01/01/2019 to 31/12/2023. Result after deduction of all costs, after the deduction of all costs. This concerns the results of the model portfolio. These may deviate from the returns of your investment portfolio. The value of your investments can fluctuate. Results achieved in the past offer no guarantee for the future.

The Sustainable Investing Mandate is an investment portfolio with investments in governments and companies that apply corporate social responsibility. The environmental and social attributes promoted by this mandate are:

1. Positive selection based on environmental, social and governance (“ESG”) performance
2. The exclusion of controversial activities
3. The exclusion of controversial countries
4. Good corporate governance.

The asset managers select companies based on these attributes, but also carry out a thorough qualitative bottom-up analysis.

The mandate invests directly and through investment funds in equities and bonds. At least 70% of the portfolio (excluding cash/money) must promote environmental or social attributes. The rest of the portfolio may consist of cash, money market instruments or investments without environmental and social attributes. It is possible that part of the actual portfolio can be considered a sustainable investment, but there is no obligation for the mandate to include one or more sustainable investments. The only derivatives that are used are interest rate and currency derivatives.

The following sustainability indicators are monitored:

• Average ESG risk rating for the portfolio (as determined by Sustainalytics)
• CO2 emissions of the portfolio
• Alignment with the objective of the Paris Climate Agreement to keep global warming well below 2 degrees Celsius
• Alignment with the Sustainable Development Goals of the United Nations (SDGs)

For this, data is used that is provided by two leading data providers, namely Sustainalytics and the Institutional Shareholder Services group of companies (“ISS”).

You can engage with companies in the portfolio. The purpose of engagement is to improve corporate strategy and performance. This is possible, for example, in the field of ESG.

Product level related sustainability information ESG Investment Mandate

Precontractual disclosure template ESG Investment Mandate

Sustainability

Sustainability is important in ABN AMRO’s investment services, which is why we also apply this within the Sustainable Investing Mandate. We exclude investments in companies that produce controversial weapons or tobacco, as well as avoid incorporating those companies into the portfolio that attach little importance to sustainability.

We use the Morningstar Sustainability methodology for this, which gives every company a sustainability score. Morningstar is a global leader in investment fund information.

For our portfolio, we require that the average sustainability score for each fund is at least the average of comparable funds or higher. This gives you an investment portfolio that, in addition to the return, also takes sustainability into account.

Information about sustainability risks

Statement of adverse effects on sustainability

ABN AMRO MeesPierson takes into account the main negative consequences of investment decisions and advice on sustainability factors. Sustainability factors include environmental, social and employment issues, respect for human rights, and the fight against corruption and bribery. We adhere to the Sustainability Risk Policy Framework of ABN AMRO Bank NV (“ABN AMRO”). The Sustainability Risk Policy Framework is partly based on the various corporate responsibility codes and on internationally recognised sustainability standards or initiatives to which ABN AMRO adheres. In accordance with the Sustainability Risk Policy Framework and international standards, the following main negative sustainability impacts are taken into account:

• Violation of the 10 principles of the United Nations (“UN”) Global Compact
• Controversies
• CO2 emissions as an indicator of climate change

Engagement is used to encourage companies within the investment universe to improve their business strategy and performance. This also includes environmental, social and governance (“ESG”) aspects.

Read the full statement here

Sample Report ESG Investment Mandate

For more information about Asset Management, please refer to the following pages:

• Terms and conditions of Asset Management
• Risks of Asset Management
• General information about Asset Management