ESG Fund Mandate

Investing for a better world

ESG Fund Mandate

Selection of funds based on ESG rating
Unique to this mandate: use of external party for exclusive fund selection
Long-term performance of companies and transparency on investments
From €50,000

Investing with a view to sustainability and financial returns

When you choose Portfolio Management, you choose a specific mandate. The ESG Fund Mandate is a broad-based portfolio of investment funds. Our asset managers select funds with environmental and social characteristics, with above-average ESG performance. The abbreviation ESG stands for Environmental, Social and Governance.

The management of the investment funds lies with ABN AMRO Investment Solutions, together with a sub-advisor, or with an external fund manager. This gives you the benefit of the expertise of different fund managers who each have their own views on sustainability, in line with your personal requirements.

The other Portfolio Management mandates

Comfort Income Mandate

Impact Funds Mandate

Multi-Manager Mandate

What do you want to know?

What do you invest in?

Sustainable investing is primarily a matter of exclusion. You do not invest in, for example, tobacco producers or companies that do not pay attention to sustainability. Companies that do operate sustainably make sure, for example, that their products are not obtained through child labour.

The ESG Fund Mandate is a composition of various individual stocks and investment funds. We have, for instance, included Celsius, the fund we set up in 2011 for innovation in emerging markets.

The Privium investment fund has also been included, for the alternative segment within a sustainable investment portfolio. Privium invests in renewable energy, financial inclusion and “cross border” student loans.

With Celsius and Privium, high financial returns are not the aim, rather a sustainable impact on the world.

Features of this mandate

If you opt for this mandate, our experts will invest on your behalf in companies that are at the forefront when it comes to finding and maintaining a balance between people, the environment and society. You have a portfolio that consists mainly of sustainable investment funds and individual sustainable bonds. Investments are also made in an impact fund. The funds are always selected on the basis of your risk profile.

Actual returns after deduction of fees

This table shows the actual net returns achieved under the ESG Fund Mandate for the past five years.

Risk	2019	2020	2021	2022	2023	since 2019
Defensive	7.4%	2.2%	3.2%	-13.1%	6.2%	4.5%
Moderately defensive	11.0%	3.1%	7.2%	-13.7%	7.1%	13.5%
Moderately aggressive	16.1%	4.5%	12.4%	-14.2%	8.3%	26.6%
Aggressive	21.8%	5.9%	17.1%	-15.7%	9.8%	39.9%
Very aggressive	25.1%	6.6%	21.0%	-16.0%	10.4%	49.7%

Source: ABN AMRO Portfolio Management, compound rate of return for the period 1 January 2019 - 31 December 2023.

Results are stated after the deduction of all fees and are based on a geometric mean calculation. These are the model portfolio results, which may differ from the returns achieved on the portfolios of individual clients. The value of your investments may fluctuate. Past performance is no guarantee of future performance.

An example calculation

We use an example calculation to show what your return and your costs could have been in the past.

Elroy is an investor who has opted for the Portfolio Management ESG Fund Mandate. He has a moderately aggressive risk profile. His investment portfolio is worth € 100.000. His total annual fees and net return were roughly as follows last year (2023):

Type of fee	Amount	Percentage
Investment service costs (including VAT)	€ 1,270	1.27%
Product costs (ongoing charges & transaction costs in funds)	€ 710	0.71%
Total fees	€ 1,980	1.98%

Net return (after deduction of all costs)	€ 8,250	8.25%

Source: ABN AMRO Portfolio Management, compound rate of return for the period 1 January 2023 - 31 December 2023. These are the model portfolio results, which may differ from the returns achieved on the portfolios of individual clients. The value of your investments may fluctuate. Past performance is no guarantee of future performance.

Returns achieved after costs.
If transactions are made in foreign currencies and settled in euros, you will pay exchange costs for the conversion.

Costs

Fees that you pay to us

You pay us a fee for our services, which include managing your portfolio and ongoing advice. This is an all-in fee, so you will not be charged any additional fees for withdrawing cash or changing your mandate or risk profile, for example. Moreover, no additional fees will be charged if you decide to stop using our Portfolio Management services. The exact fee you pay depends on your risk profile and ranges from 1.21% to 1.39% of your invested assets each year (these percentages include 21% VAT).

Fees that you pay to other parties

You also pay fees for the investment funds that are run by external fund managers for ABN AMRO. Some of the funds are managed by ABN AMRO, in which case ABN AMRO is the fund provider. These fees are also known as ongoing charges and are paid to managers to cover the costs of making the 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

What does this mandate comprise?

A broadly diversified portfolio consisting mainly of investment funds selected by our investment experts from a global range. The investment platform provides access to a wide range of investment funds and fund managers.

Equity funds
Equity funds invest in a specific region or focus on a specific type of company, such as companies with potential for growth or companies that pay a high dividend.
Bonds
You can choose to invest part of your portfolio in bonds as they have a relatively low risk. The bonds we offer have varying credit ratings and terms to maturity.
Other investments
This category currently consists of an impact fund with investments that include microloans, renewable energy projects and loans for students from developing countries. Investments are also made in the FMO Impact Fund.
Impact funds are funds in which the balance between people, the environment and society is considered to be just as important as aiming for financial returns. They often invest with the specific aim of helping to bring about this balance.
Liquid assets
Liquid assets are held in an account that pays interest. This account is covered by the deposit guarantee scheme.

Sustainability information

The ESG Fund Mandate is a broadly diversified portfolio of investment funds. The asset managers select investment funds in collaboration with ABN AMRO Investment Solutions (“AAIS”), which specialises in selecting investment funds. The fund manager and the sustainability of the investment fund are subject to an extensive due diligence procedure. The Mandate promotes ecological and social characteristics. This means that investment funds with an above-average environmental, social and governance (“ESG”) performance are selected.

Sustainability

Socially responsible investing is an important principle at ABN AMRO. Some investments (such as investments in companies that produce tobacco, cluster bombs and landmines) are completely excluded from all our investment concepts.

With regard to 'tobacco', we differentiate between the production of tobacco and the sale of tobacco. ABN AMRO does not allow investments in producers of tobacco, whereas companies that ship cigarettes, and supermarkets that sell tobacco products, are not excluded.

Do you want to know how much impact you make with your investments? If you invest with ABN AMRO, you will receive an overview of the sustainable impact of your investments in your quarterly report.

Risk profiles

ABN AMRO uses five different risk profile in its Portfolio Management services. These range from a low-risk profile (defensive) to a very high-risk profile (very offensive). Each risk profile is associated with a specific portfolio model, which shows how we recommend you spread your investments across equities, bonds, alternative investments and liquid assets.

Once you have determined your risk profile with the guidance of your Investment Adviser, we will be able to put together an appropriate investment portfolio and immediately give you an idea of the impact on your investment returns.

Investment Dashboard

Your Investment Dashboard can be viewed in Internet Banking at any time of day or night. The Investment Dashboard provides a quick picture of your portfolio, investment gains and losses, and income. Besides viewing your total assets, you can also see the individual financial instruments (including related results). The Investment Dashboard provides a clear overview and is easy to use.

How to view your Investment Dashboard:

Select an investment account in Internet Banking
Click on 'Investment report'
View your portfolio and results in your Investment Dashboard.

We also keep you updated in other ways:

Investment report

This quarterly report includes information on the following:
Your actual return, compared with the benchmark for your profile
The transactions in the past quarter
The allocation of your assets across the asset classes
An explanation of the investment policy in the past quarter

Digital Portfolio Management newsletter

You will receive our monthly digital newsletter, which explains the investment choices made by our specialists.

Annual statement for tax purposes

The bank will send you an annual statement for tax purposes showing the value of your assets that you need to report in your tax return.

Conditions and risks

Conditions

Read the investment terms and conditions .

Risks

You should only invest money that you do not need and that is surplus to your buffer for unforeseen expenses. While investing can be very interesting, it also entails risk. You could lose some or all of the money you invested. This is something you need to be aware of. Only invest in investment products that you understand.

If you opt for our Portfolio Management service, you do not make any investment choices yourself. Even so, you still need to be aware of the risks associated with investing.

When you start using our Portfolio Management service, you determine your own risk profile based on advice provided by your Investment Adviser. Our experts will then take care of buying and selling your investments, in line with your risk profile.

It is also good to know that:

A specialist department checks the investment risks in your portfolio every day. The daily operational processes that are a necessary part of managing your portfolio comply with the highest European standards (ISEA 3402).
The investments in your portfolio are legally separate from ABN AMRO. They are held in your name and are therefore your property. This means that your investments will be safe in the unlikely event that ABN AMRO becomes insolvent.

Termination

You can stop using our Portfolio Management service at any time without paying any termination fees.

Deposits and withdrawals

When you opt for Portfolio Management, you entrust the long-term management of your assets to us. You may make deposits and withdrawals at no extra charge, but this may affect whether you are able to achieve your investment objectives. Your Investment Adviser can provide you with advice about this.

Statement of adverse effects on sustainability

ABN AMRO 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.