The NN (L) Euro Green Bond fund has been awarded the LuxFlag Climate Finance label, effective as of 1 April.
Assets in the fund have grown from some €20m in February 2016 to some €100m today, NN Investment Partners said. The fund meets the eligibility criteria for the label, which is awarded to portfolios that finance climate change mitigation and/or adoption measures. The label is intended to provide investors with a steer to investments that will help finance climate change initiatives. Thus far the NN IP fund is the first and only such fund certified by LuxFlag with its Climate Finance label. The management firm also noted that it is the first green bond fund to link investments to the UN Sustainable Development Goals.
NN IP said that although the labeling allows for up to 25% of fund assets to be held in cash, liquid assets or other investments that have no impact on the environment, this particular fund “has always had 100% green bonds in its portfolio”.
Last December, LuxFlag announced the first three funds to be given the label: East Capital China Environmental, Green for Growth Fund Southeast Europe and NSF Climate Change+ Fund.
The funds will be verified annually to ensure that they remain eligible for the label.
LuxFlag also offers labels for funds that meet criteria around microfinance, ESG, and environment.