Nikko AM World Bank Green Fund

Luxembourg

Last updated 12 May 2020, by Impactyield.

Edit this fund

Fund geography

Global (48)

The investment objective of this fund is to achieve capital growth and income over the mid to long term by investing primarily in World Bank green bonds, which will help to mitigate global climate change in developed and emerging markets. The emphasis of the approach is active currency management to identify countries with positive underlying fundamentals and significant prospective income. Through diversification, portfolios are exposed to both developed and emerging currencies, within a stable framework.

The minimum investment in the Fund is $100K USD and the Fund is sold only to accredited US investors as a US Private Placement.


Asset class

,

Fund style

Not listed


Financial description

The Nikko AM World Bank Green Fund aims to achieve capital growth and income over the mid to long term, by primarily investing in World Bank Green bonds which help to mitigate global climate change in developed and emerging markets. The emphasis of the approach is active currency management to identify countries with positive underlying fundamentals and significant prospective income. Through diversification, portfolios are exposed to both developed and emerging currencies, within a stable framework.
The fund actively manages currency and duration positions to seek to enhance return. In addition, by holding high grade World Bank green bonds, the fund has greater potential to outperform the underlying government bond indices.
The broad range of countries in the index – both developed and emerging – and the active management of currency exposure relative to the benchmark, both provide opportunities to achieve an excess return. With duration positions in each market monitored relative to the underlying country index, opportunities are sought to add value within individual markets, as well as at the portfolio level.
The Fund uses a customized benchmark which is comprised of 50% Citigroup World Government Bond Index and 50% JP Morgan Government Bond Index – Emerging Markets.

13 years

of track record

2010

the year funded

n.a.

AUM

Asset manager

Nikko Asset Management

Website

Headquarters location:

SDG goals

SDG targets

Affordable and sustainable transport systems

Substantially reduce waste generation

Integrate climate change measures into policies and planning

Universal access to modern energy

Increase global percentage of renewable energy

Double the improvement in energy efficiency

Expand and upgrade energy services for developing countries

Key performance indicators

Fund overview

Asset manager: Nikko Asset Management

Product track record: Fund has 13 years of track record

Target IRR: 1%

Committed Capital: 0 USD (US Dollar)

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:

Style/Stage:

Inception year: 2010

Vintage year: 2010

Target region:

Target close date: n.a.

Product term: Daily liquidity

Assets under management: n.a.

Investment size: Min: 100,000; Max: 0; Avg: 0

Co-investment policy:

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 0

Fund investments to date exited or repaid: 0

Management fee: 0.45%

Carried interest: n.a.

Hurdle rate: n.a.

GIIN Investors' Council Investment: No

Limited Partners / Investors: n.a.

Limited Partner / Investor Type: Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors

Contact

E-mail: n.a.

Website: http://en.nikkoam.com/institutional/fixedincome/worldbankgreenbonds

Phone number: 212-610-6120

If you wish to have your details removed from this database please email gdpr@impactyield.com


Christina Alfandary

Senior Managing Director

Nadejda Bojinova

Associate Director, Sales & Marketing

Stuart Kinnersley

Chief Investment Officer

Impact Performance

n.a.

Impact thesis

The investment team’s focus is on constructing a portfolio of currencies which they believe will achieve capital growth and income over the mid to long term; Nikko AM then works with the World Bank to have green bonds issued in the chosen currencies. Proceeds from World Bank green bonds are used to support projects selected by World Bank environment specialists that mitigate climate change in developed and emerging markets to promote low-carbon development, based on a predetermined set of criteria examined and verified by an external, independent body, Center for International Climate and Environmental Research Oslo (CICERO).
The World Bank is responsible for determining green projects suitable for funding and monitors the effectiveness and impact of green projects. World Bank Green Bonds are an opportunity to invest in climate solutions through a triple-A rated fixed income product without sacrificing returns. The credit quality of the Green Bonds is the same as for any other World Bank bonds. Repayment of the bond is not linked to the credit or performance of the projects, and investors do not assume the specific project risk. Investors benefit from the AAA/Aaa credit of the World Bank, as well as from the due diligence process of the World Bank for its activities.
Nikko AM will donate 10% of its investment management fee from the Fund to the International Development Association. There is also potential to contribute to other organizations with similar causes.

Impact Management

n.a.

Request information about this fund