Lower green bond yields no barrier for entry for Nordic endowment
Nordic as well as other investors tend to believe green bonds offer lower yields compared to other fixed income assets, which research by investment consultancy Kirstein shows. But some institutions would gladly give up "a few basis points" for the greater good, a recent webinar by NN Investment Partners highlights.
Two years ago, KLP Kapitalforvaltning accounted for 4 percent of inflows to Norwegian retail funds. Now, its share is 17.6 percent. "It's been a dramatic change," says CEO Håvard Gulbrandsen, who thinks sustainable funds, low prices and new dynamics in the Norwegian retail market are responsible.
The Swedish Pensions Agency has been busy recently, with a first foray into real estate and new terms and conditions for its fund platform meaning lower fees for savers. Fund department chief Erik Fransson also discusses whether going fossil free has had an impact on returns.
Five new guidelines aim to create more transparency about how Danish pension funds asses the value of unlisted assets – but according to several pension firms, they already live up to these principles.