The total AUM indicated above refer to three distinct portfolios that are managed within KfW’s treasury department and comprise KfW’s asset management activities. All three portfolios have distinct objectives. In addition to the liquidity portfolio, KfW has two promotional investment portfolios under management: the KfW Green Bond portfolio and the ABS promotional portfolio. The promotional portfolios are supported by the Federal Ministry for Environment, Nature Conservation, Building and Nuclear Safety (BMUB) and the Federal Ministry for Economic Affairs and Energy (BMWi), respectively.
Whereas the liquidity portfolio is an essential component of KfW’s liquidity maintenance strategy, the Green Bond and ABS portfolios each have separate promotional purposes. The main objective of the Green Bond portfolio is to finance projects with regard to environmental protection and climate change while the ABS promotional portfolio aims at facilitating access to capital markets for the small and medium-sized companies (SMEs).
Further details regarding the responsible investment approach of all three portfolios are available in SG 01.5.