News & Commentary
• NN Investment Partners (NN IP) broadens its Convertible Bonds franchise by launching the NN (L) Global Convertible Bond fund (‘the Fund’) • The Fund offers investors a diversified and scalable exposure to the asset class without compromise on credit quality • The Fund complements the existing NN (L) Global Convertible Opportunities fund (‘the Opportunities Fund’) which celebrated its sixth year anniversary in April 2018.
• Convertible bonds have outperformed equities and bonds over the long term • NN IP anticipates two economic scenarios in which interest rates will increase and economic growth will either remain range-bound or break out on the upside, supporting the case for convertible bonds. • NN Investment Partners (NN IP) expects monetary tightening and higher bond yields to prompt greater issuance of convertible bonds
NN Investment Partners (NN IP) and FMO Investment Management’s NN-FMO Emerging Markets Loans Fund (the 'Fund') saw strong Dutch and international institutional demand at a first close of USD 250 million, overshooting its minimum target by 25%, due to four key investors from Sweden and the Netherlands. Dutch development bank FMO established FMO Investment Management which allowed FMO to scale up impact investing by providing investors access to its deal flow. The cooperation with NN IP provided a next stage through the establishment of the Fund.
NN Investment Partners (NN IP) signed a memorandum of understanding (MoU) today with China’s leading asset manager, China Asset Management Co., Ltd. (ChinaAMC). The MoU will provide a platform for NN IP and ChinaAMC to explore joint product development opportunities and consequently leverage on each other’s capabilities in European and Chinese capital markets respectively. In particular, the MoU is expected to strengthen NNIP and ChinaAMC’s environmental, social and governance (ESG) offerings to clients.
• Increasing scarcity of high return assets and political risks are the two biggest concerns highlighted by institutional investors, and this will fuel demand for alternative credit • The ability to offer higher absolute risk-adjusted returns is seen as the main benefit of alternative credit • Senior Bank Loans, Infrastructure Debt/Project Finance and Commercial Real Estate Loans are identified as the two most attractive forms of alternative credit
NN Investment Partners (NN IP) is pleased to announce the appointment of Yvette Babb, thereby further strengthening its Emerging Market Debt (EMD) capabilities.
• Asian debt, with a market cap approaching US$ 1 trillion (US$886.7bn at 31/03/18) is no longer a niche asset class • Asian debt has remained relatively resilient despite increased volatility at the start of 2018, thanks to lower interest rate sensitivity • Fears of a trade war between the US and China have been overblown • NN Investment Partner’s Asian Debt Hard Currency strategy shows nine consecutive years of benchmark outperformance
• 37% of institutional investors are set to increase their exposure to alternative credit if interest rates continue to rise • 14% of investors are set to invest in the asset class for the first time this year • Key obstacles to investing in alternative credit include understanding the risk profile, and a lack of relevant data and information
Today, NN Investment Partners (NN IP) launches the NN (L) Emerging Markets Debt Short Duration Hard Currency Fund (‘the Fund’). Building on NN IP’s long and extensive experience with investing in Emerging Markets Debt (EMD), the Fund is designed to offer investors stable, long term income with low credit risk.
Manager selection specialist Altis, part of NN Investment Partners (NN IP), is enhancing its research capabilities in Alternative Investments “Alternatives” with the addition of three experienced portfolio managers. The equity and fixed income teams will be strengthened with expertise in the field of Alternative Fixed Income, (non)-listed Real Estate and Alternatives (Private Equity and Infrastructure).