A new fund management incubator backed by APG, which manages assets of the €173 billion ($247 billion) Dutch pension fund ABP, made its first investment in a new long/short SRI strategy.
Jeroen Tielman, CEO of IMQubator, said in a telephone interview that €25 million will be allocated to the Branta Solutions Fund, which analyzes environmentally sustainable investments from a behavioral perspective.
Its a new angle in sustainability, Mr. Tielman said.
IMQubator was launched in January with the support of the Holland Financial Center Foundation, an industry organization set up to strengthen the Dutch financial sector. So far, APG has already committed €250 million to the company. Two other Dutch pension funds are expected to join Heerlen-based ABP in providing funding by the end of the year, Mr. Tielman said. IMQubator officials also plan to seek large overseas pension funds to participate.
The aim is to provide institutional seed money to highly experienced managers with innovative investment strategies that dont necessarily have proven track records. What we look for are distinctive elements in the investment solution, either from the perspective of the asset class or the investment process, Mr. Tielman added. Risk management is also a key factor.
IMQubator will invest in the new fund for at least three years in addition to providing support services such as legal guidance, risk management and administrative advice.
Overseas managers applying for funding must be willing to relocate to the Netherlands.
IMQubator has received 111 applications and narrowed the list to 33 finalists, 12 of which are from non-Dutch firms. Additional managers are scheduled to be selected later this year.