NN Group NV and asset management unit NN Investment Partners Holdings NV will exclude tobacco from all investments.
The Dutch insurer said it aims to divest all fixed-income and equity holdings of tobacco manufacturers within one year, with the policy to apply to all mutual funds managed by NN Investment Partners. The unit, however, will not divest client assets managed in a discretionary way without prior consultation.
Existing tobacco investments in the group's general accounts, which are all corporate bonds, will be divested immediately or brought to maturity. Maurice Piek, a spokesman for the company, said the group holds approximately €200 million in corporate bonds issued by tobacco manufacturers, according to a May 17 Reuters report.
Previously, the group excluded tobacco only from its dedicated socially responsible investing funds and mandates, including sustainable and impact products. NN said it extended the exclusion to all its proprietary and client funds and mandates as part of the company's responsible investment policy.
"The decision takes into account concerns regarding public health, because it is not possible to use tobacco products responsibly, as well as the economic burden on society via the externalized economic and societal costs of tobacco and how this may affect investors," the group's Chief Investment Officer Jelle van der Giessen said.
