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Index Mandate

Investing in ETFs and index funds

Index Mandate

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  • Investment goal: to grow your assets
  • Invests in ETFs and index funds with a global spread
  • Sustainability profile: ESG Starters
  • Low costs thanks to active management of a passive portfolio
  • From €50,000

If you want a team of specialists to help you invest in ETFs and index funds, or if you’re considering investing some of your savings, the Index Mandate might be just what you’re looking for.

The Index Mandate is a low-threshold way of starting Portfolio Management. It lets you invest your money in ETFs and index funds at a relatively low cost.

These funds are designed to replicate the performance of a stock market index. Your money is invested in ‘baskets’ of shares and bonds, so that you spread your investments and run a lower risk of losing your capital.

You should only invest money that you don’t need, after you’ve set aside a buffer for unforeseen expenses. Investing involves risk. You could lose all or part of your initial investment.

What are ETFs and index funds?

Exchange Traded Funds (ETFs) and index funds are funds that invest in shares and/or bonds. They track the shares or bonds of a specific stock exchange index, such as the MSCI World Index, as closely as possible. The difference between an index fund and an ETF is that an index fund is only traded once a day, while ETFs can be traded continuously during trading hours. 

Lower costs due to passive investing

Investing in the Index Mandate means investing in ETFs and index funds that replicate a specific stock market index or the market. This is what we call passive investing. One of the advantages is that the costs are usually lower. What’s more, ETFs and index funds are an easy way of spreading your investments (and therefore the risks). These funds allow you to invest in hundreds of companies across the world. Our specialists focus on optimising your portfolio’s performance. We’ll change the distribution whenever we see opportunities in the market. In other words, our active portfolio management means that you benefit from our expertise.

More information and conditions

Features of the Index Mandate

Sustainability profile: ESG Starters

Your sustainability profile shows how important you consider sustainability to be in your investments. We have four sustainability profiles: Non-sustainable, ESG Starters, ESG Advanced and Impact. The Index Mandate is mainly intended for clients with an ESG Starters profile. This means that your investments support companies in the first phase of sustainability. 

We focus mainly on the ESG criteria: ESG stands for Environmental, Social and Governance. The companies we invest in aim to promote certain environmental or social objectives. They must also comply with our standards for good governance. At least 70% of the investments in the portfolio must satisfy these criteria, which means that up to 30% of the investments possibly won’t meet the criteria.

The mandate does not invest in companies involved in controversial activities, such as the sale of arms or tobacco.

Investments in this mandate start from €50,000. 

How the mandate is put together

ABN AMRO selects and manages your investments in the Index Mandate. We choose ETFs and index funds that take the ESG criteria into account. When putting the mandate together, our portfolio managers are supported by specialists with specific knowledge of aspects such as sustainability and investment strategies.

The Index Mandate tracks a benchmark. A benchmark is the standard against which we compare the results of your portfolio. In this case, the benchmark is the MSCI ACWI Index, a global index that monitors the performance of companies from both established and emerging markets. The MSCI ACWI (All Country World Index) is a newer, more extensive version of the MSCI World Index, a benchmark that's widely used for investment funds. The full index is explained in the ‘A closer look at your investor profile’ leaflet.

The main aim of the Index Mandate is to outperform the benchmark. So we actively manage your portfolio, which comprises passive funds, and always adhere to the ABN AMRO investment policy. Our specialists are continuously working to optimise the performance of your portfolio, making adjustments to the distribution if they see opportunities in the market or risks in the portfolio.

Details of the mandate

The Index Mandate is made up of index funds and ETFs. These are funds that track a specific stock market index at relatively low costs. They invest in shares or bonds, offering a world-wide distribution. This also spreads the risk. Investments are spread between Europe, North America and emerging markets, depending on your risk profile. The main emphasis is on companies that seek to promote particular environmental and social objectives (ESG investing). 

Fees

You pay a fee for our services, which includes managing your portfolio. You will not be charged extra for withdrawals, or changes to your mandate or risk profile. Neither will you be charged if you decide to stop using Portfolio Management. The exact fee depends on your risk profile, but it will be between 0.97% and 1.21% of your invested assets each year (incl. 21% VAT).

Information on sustainability

Socially responsible investing is a key ABN AMRO principle. We apply this principle to our Index Mandate, as well as to the other Portfolio Management mandates. Certain investments (in producers of tobacco, cluster bombs or land mines, for example) are unequivocally excluded from all investment concepts.

A distinction is made between the production and the sale of tobacco. ABN AMRO does not allow any type of investment in companies that produce tobacco. We do not, however, exclude companies that transport cigarettes or supermarkets that sell tobacco, solely for that reason.

At least 70% of an Index Mandate investment portfolio must satisfy the ESG Starter criteria. ESG stands for environmental, social and governance.

This is calculated based on the Morningstar Sustainability method, which allocates every company a sustainability score. Morningstar is a leading, global organisation, that compiles information relating to investment funds.

To find out how much impact you’re making with your investments, read the quarterly report, which gives an overview of sustainability information about your investments. It shows you how well your portfolio is doing in terms of the ESG criteria, for example, and the ecological footprint of your investments. You’ll find more information in the following documents:

Transparency integration sustainability risks Index Mandate (pdf)

Precontractual disclosure template Index Mandate (pdf)

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.

Learn more about Asset Management risks and terms and conditions

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

More information and conditions

Features of the Index Mandate
How the mandate is put together
Details of the mandate
Fees
Information on sustainability
Learn more about Asset Management risks and terms and conditions

Features of the Index Mandate

Sustainability profile: ESG Starters

Your sustainability profile shows how important you consider sustainability to be in your investments. We have four sustainability profiles: Non-sustainable, ESG Starters, ESG Advanced and Impact. The Index Mandate is mainly intended for clients with an ESG Starters profile. This means that your investments support companies in the first phase of sustainability. 

We focus mainly on the ESG criteria: ESG stands for Environmental, Social and Governance. The companies we invest in aim to promote certain environmental or social objectives. They must also comply with our standards for good governance. At least 70% of the investments in the portfolio must satisfy these criteria, which means that up to 30% of the investments possibly won’t meet the criteria.

The mandate does not invest in companies involved in controversial activities, such as the sale of arms or tobacco.

Investments in this mandate start from €50,000. 

How the mandate is put together

ABN AMRO selects and manages your investments in the Index Mandate. We choose ETFs and index funds that take the ESG criteria into account. When putting the mandate together, our portfolio managers are supported by specialists with specific knowledge of aspects such as sustainability and investment strategies.

The Index Mandate tracks a benchmark. A benchmark is the standard against which we compare the results of your portfolio. In this case, the benchmark is the MSCI ACWI Index, a global index that monitors the performance of companies from both established and emerging markets. The MSCI ACWI (All Country World Index) is a newer, more extensive version of the MSCI World Index, a benchmark that's widely used for investment funds. The full index is explained in the ‘A closer look at your investor profile’ leaflet.

The main aim of the Index Mandate is to outperform the benchmark. So we actively manage your portfolio, which comprises passive funds, and always adhere to the ABN AMRO investment policy. Our specialists are continuously working to optimise the performance of your portfolio, making adjustments to the distribution if they see opportunities in the market or risks in the portfolio.

Details of the mandate

The Index Mandate is made up of index funds and ETFs. These are funds that track a specific stock market index at relatively low costs. They invest in shares or bonds, offering a world-wide distribution. This also spreads the risk. Investments are spread between Europe, North America and emerging markets, depending on your risk profile. The main emphasis is on companies that seek to promote particular environmental and social objectives (ESG investing). 

Fees

You pay a fee for our services, which includes managing your portfolio. You will not be charged extra for withdrawals, or changes to your mandate or risk profile. Neither will you be charged if you decide to stop using Portfolio Management. The exact fee depends on your risk profile, but it will be between 0.97% and 1.21% of your invested assets each year (incl. 21% VAT).

Information on sustainability

Socially responsible investing is a key ABN AMRO principle. We apply this principle to our Index Mandate, as well as to the other Portfolio Management mandates. Certain investments (in producers of tobacco, cluster bombs or land mines, for example) are unequivocally excluded from all investment concepts.

A distinction is made between the production and the sale of tobacco. ABN AMRO does not allow any type of investment in companies that produce tobacco. We do not, however, exclude companies that transport cigarettes or supermarkets that sell tobacco, solely for that reason.

At least 70% of an Index Mandate investment portfolio must satisfy the ESG Starter criteria. ESG stands for environmental, social and governance.

This is calculated based on the Morningstar Sustainability method, which allocates every company a sustainability score. Morningstar is a leading, global organisation, that compiles information relating to investment funds.

To find out how much impact you’re making with your investments, read the quarterly report, which gives an overview of sustainability information about your investments. It shows you how well your portfolio is doing in terms of the ESG criteria, for example, and the ecological footprint of your investments. You’ll find more information in the following documents:

Transparency integration sustainability risks Index Mandate (pdf)

Precontractual disclosure template Index Mandate (pdf)

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.

Learn more about Asset Management risks and terms and conditions

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

Investing involves risks

Investing involves risks. You could lose (some of) the money you invested. If you are going to invest, it is important that you are aware of this. Invest with money you can spare. Read more about the risks associated with investments.

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