Index Mandate

Investing in ETFs and index funds

Index Mandate

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.

The other Portfolio Management mandates

Impact Funds Mandate

ESG Fund Mandate

Comfort Income Mandate

Multi-Manager Mandate

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.

What do you want to know?

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

This is what you pay us:

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:

Precontractual disclosure template Index Mandate (pdf)

Transparency integration sustainability risks Index Mandate (pdf)

Risk profiles

ABN AMRO uses five different risk profile in its Portfolio Management services. These range from a very low-risk profile (very defensive) to a very high-risk profile (very offensive). Each risk profile is associated with a specific portfolio model, which shows how we recommend you spread your investments across equities, bonds, alternative investments and liquid assets.

Once you have determined your risk profile with the guidance of your Investment Adviser, we will be able to put together an appropriate investment portfolio and immediately give you an idea of the impact on your investment returns.

Investment Dashboard

Your Investment Dashboard can be viewed in Internet Banking at any time of day or night. The Investment Dashboard provides a quick picture of your portfolio, investment gains and losses, and income. Besides viewing your total assets, you can also see the individual financial instruments (including related results). The Investment Dashboard provides a clear overview and is easy to use.

How to view your Investment Dashboard:

Select an investment account in Internet Banking
Click on 'Investment report'
View your portfolio and results in your Investment Dashboard.

Wealth Dashboard

We also keep you updated in other ways:

Investment report

This quarterly report includes information on the following:
Your actual return, compared with the benchmark for your profile
The transactions in the past quarter
The allocation of your assets across the asset classes
An explanation of the investment policy in the past quarter

Digital Portfolio Management newsletter

You will receive our monthly digital newsletter, which explains the investment choices made by our specialists.

Annual statement for tax purposes

The bank will send you an annual statement for tax purposes showing the value of your assets that you need to report in your tax return.

Conditions and risks

Conditions

Read the investment terms and conditions .

Risks

You should only invest money that you do not need and that is surplus to your buffer for unforeseen expenses. While investing can be very interesting, it also entails risk. You could lose some or all of the money you invested. This is something you need to be aware of. Only invest in investment products that you understand.

If you opt for our Portfolio Management service, you do not make any investment choices yourself. Even so, you still need to be aware of the risks associated with investing.

When you start using our Portfolio Management service, you determine your own risk profile based on advice provided by your Investment Adviser. Our experts will then take care of buying and selling your investments, in line with your risk profile.

It is also good to know that:

A specialist department checks the investment risks in your portfolio every day. The daily operational processes that are a necessary part of managing your portfolio comply with the highest European standards (ISEA 3402).
The investments in your portfolio are legally separate from ABN AMRO. They are held in your name and are therefore your property. This means that your investments will be safe in the unlikely event that ABN AMRO becomes insolvent.

Termination

You can stop using our Portfolio Management service at any time without paying any termination fees.

Deposits and withdrawals

When you opt for Portfolio Management, you entrust the long-term management of your assets to us. You may make deposits and withdrawals at no extra charge, but this may affect whether you are able to achieve your investment objectives. Your Investment Adviser can provide you with advice about this.

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.