NN Investment Partners launches NN (L) Global Convertible Bond fund
• 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.
The Fund, which was officially launched on 23 April 2018, addresses growing global investor demand for exposure to the convertible asset class in a tightening monetary environment with increasing equity volatility. Equity return potential with lower downside and low exposure to interest rates make Convertible Bonds attractive. The new Fund is tailored for clients seeking a diversified convertible exposure.
The Fund will be managed by NN IP’s Global Convertible Strategies Team. It leverages off the Team’s established security selection and credit processes while keeping a strong focus on liquidity and diversification. The fund has a target annual return of 1% gross outperformance of its benchmark (Thomson Reuters Global Focus Hedged Convertible Bond Index).
NN IP’s capabilities in convertible bond investing have been established by the flagship NN (L) Global Convertible Opportunities fund, which celebrated its 6th year track-record anniversary in April 2018. Currently*, the Opportunities Fund manages USD 1.3bn and has returned 65.7% since inception (gross of fees), compared to 40.1% for its benchmark (Thomson Reuters Global Focus Hedged Convertible Bond Index) over the same period. The new Fund combines a selection of the most liquid securities within the Opportunities Fund, with a credit, liquidity and ESG**-driven benchmark selection. With this approach, the Fund aims for a diversified and scalable exposure to the asset class. The Fund launched with a significant investment from an existing institutional convertible bond client, endorsing the capabilities of NN IP's Team. Total convertible bond assets under management stood at USD 1.5bn.
Ivan Nikolov, Senior Portfolio Manager, Global Convertible Strategies at NN Investment Partners, comments: “Benefitting from equity return participation with reduced volatility and low effective duration, convertible bonds are likely to remain ideally positioned to navigate through the current market environment characterised by tight-ening monetary policies and volatile equity markets. Our new fund allows investors access to the key benefits of the convertible asset class through a disciplined and diversified investment process.”
NN (L) Global Convertible Bond fund and NN (L) Global Convertible Opportunities fund are sub-funds of NN (L) (SICAV), established in Luxembourg. NN (L) (SICAV) is duly authorised by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg. Selected share classes of the NN (L) Global Convertible Opportunities fund are currently registered in Luxembourg, The Netherlands, Belgium, Germany, Switzerland, Spain, Italy, France, Sweden, Norway, Denmark, Finland, Chili, Singapore, Austria, Ireland, Hungary, South Korea. Selected share classes of the NN (L) Global Convertible Bond fund are currently registered in Luxembourg, United Kingdom, Germany, and The Netherlands.
* as of 30 April 2018
** ESG – Environmental, Social and Governance
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