SRI Funds
Nikko Asset Management launched the Nikko Eco Fund in 1999, investing in companies that have environment-related business as well as companies that demonstrate superior responses to environmental issues, marking the first SRI fund in Japan. In 2000, we began offering the Nikko Global Sustainability Fund (“globe”) (No Hedge / Hedge), which invests in companies with superior sustainability from the perspectives of economic rationality, environmental friendliness, and societal compatibility.
In June 2007, Nikko Asset Management launched two new SRI funds: the Nikko Global Water Fund, which makes diversified investments in global companies contributing to precious water resources to support sustainable development, and the Nikko World Bank Bond Fund (Monthly Divided Payment Type) ("World Supporter"), which allows investors to support developing countries through investments in World Bank bonds issued in the currencies of developing countries.
Nikko Asset Management donates a percentage of the trust fees earned from World Supporter to UN-affiliated entities that support developing nations (in areas including health care and child education). Our first donation of 5,071,091 yen was made in October 31, 2007 to the International Development Association (IDA), an organization that works to reduce global poverty. This marked the IDA's first-ever donation from the private sector and gave birth to a crucial partnership toward the realization of a sustainable society.
About the International Development Association
The International Development Association (IDA) is an arm of the World Bank that was established in 1960.
It provides grants and long-term, no-interest loans to projects aimed at promoting economic development, correcting inequality, and raising living standards in the world’s poorest countries.
As of June 2007, there were 80 IDA borrower nations (39 of which were in Africa) with a total population of 2.5 billion people. Of those, 1.5 billion were living on less than US$2 per day.
The donation from World Supporter will be used to aid the IDA’s efforts to reduce poverty in developing nations, with a particular focus on health and education for children.
Nikko Asset Management will continue to provide investors with opportunities to contribute to building a sustainable society through SRI funds in addition to asset-building opportunities.
Principles for Responsible Investment
The Principles for Responsible Investment, announced by then-UN Secretary General Kofi Annan in 2005, were developed from the recognition that there lacked a sufficient framework for the financial industry to consider environmental and social issues, despite the industry’s critical impact on the global economy. Institutional investors who sign on to the principles promise to incorporate “ESG issues” – i.e. Environment, Social, and Governance – in their decision-making processes.
Nikko Asset Management signed on to the Principles in October 2007, and our investment professionals have been cooperating to engage in investment activities that reflect these Principles.
Principles for Responsible Investment
- We will incorporate ESG issues into investment analysis and decision-making processes.
- We will be active owners and incorporate ESG issues into our ownership policies and practices.
- We will seek appropriate disclosure on ESG issues by the entities in which we invest.
- We will promote acceptance and implementation of the Principles within the investment industry.
- We will work together to enhance our effectiveness in implementing the Principles.
- We will each report on our activities and progress towards implementing the Principles.
Click here for the full text of PRI
Association for Sustainable & Responsible Investment in Asia
ＡＳｒＩＡ is a Hong Kong-based non-profit organization established in 2001 to promote sustainable socially responsible investment in the Asia-Pacific Region. As a founding member, Nikko AM is working to spread SRI in Asia through its support of ASrIA’s activities.
Nikko AM
