NN (L) Patrimonial Balanced: success in turbulent years

08/02/2018

NN Investment Partners’ Multi-Asset team has managed The NN (L) Patrimonial Balanced Fund since 2008. For more than five years in a row, the fund has received 4 or 5 Morningstar Stars. The team’s stability, years of experience and continuous drive to learn and innovate are the most important factors contributing to this success. The team has evolved strongly during this period and can compete with the best in the industry.

The fund is managed by Jan Kvapil and Siu-Kee Chan. They are part of the Multi-Asset Team consisting of 12 portfolio managers and 6 strategists. It is one of the largest Multi-Asset teams in Europe with a strong track record. Siu-Kee Chan looks back on the developments in recent years and explains how the fund has been able to perform consistently despite the economically turbulent years. He goes on to discuss its future strategy.

Net fund performance and overall Morningstar rating

(Patrimonial Balanced, P-Cap)

Source: Morningstar 16-1-2018 (Please note that past performance is not a reliable indicator of future results)

Siu-Kee Chan, Senior Portfolio Manager Multi-Asset at NN Investment Partners, commented: “To be able to respond quickly to changing market conditions, it is important for the Multi-Asset team to continuously learn and innovate. In recent years, for example, we have expanded our expertise in sentiment indicators by analysing investor behaviour, their positioning but also by making use of ‘big data’ to identify emotions. We have developed two indicators that reflect the emotion in the market. These are based on data from social media and professional digital media. Combining the sentiment analysis and economic fundamental analysis gives us a better understanding of the financial markets and enables us to identify investment opportunities at an early stage.”

Despite a number of economically turbulent years, the fund’s performance has been stable and consistent. Chan explained: “Stability and consistency may be boring concepts for many, but for us as investment specialists these are core values. It means that we were able to add value, even during volatile markets. Looking back on the past ten years, it is striking that the fund has performed well in times of unusual events. For example, we focused on the ‘search for yield’ theme in the period just after the euro crisis, when the ECB announced its ‘long-term refinancing operations’ in early 2013. More recent examples are the hedges we set up just before the Brexit referendum and the US elections. Ultimately, we often made the right decisions, which resulted in good performance and five Morningstar Stars for the fund. Obviously this is just a snapshot of past performances in an infinite game. That is why it is important to keep our sights on the future.”

The NN (L) Patrimonial Balanced Fund is managed by a strong team with a proven process that knows how to adapt to the evolving financial landscape. Chan added: “The emphasis is currently on strategies that fit a more mature stage in the economic cycle. The global economy is strong and we anticipate higher interest rates due to central banks gradually normalising their monetary policies. In such an environment, we have a preference for equities and we are cautious about positions with interest rate risk. This is also reflected in our sector positioning within equities, for which we prefer cyclical sectors and the financial sector. I look forward to the future with confidence.”

NN (L) Patrimonial Balanced is a sub-fund of NN (L) Patrimonial (SICAV), established in Luxembourg. NN (L) Patrimonial is duly authorized by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg. The fund has been notified to the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, AFM). Several share classes of the sub-fund are currently registered in Luxembourg, The Netherlands, Hungaria, France, Greece, Belgium, Spain, Sweden, Peru, Chili and Austria.

Download the article:

Disclaimer

This communication is intended for press use only. This communication has been prepared solely for the purpose of information and does not constitute an offer, in particular a prospectus or any invitation to treat, buy or sell any security or to participate in any trading strategy or the provision of investment services. While particular attention has been paid to the contents of this communication, no guarantee, warranty or representation, express or implied, is given to the accuracy, correctness or completeness thereof. Any information given in this communication may be subject to change or update without notice. Neither NN Investment Partners B.V., NN Investment Partners Holdings N.V. nor any other company or unit belonging to the NN Group, nor any of its directors or employees can be held directly or indirectly liable or responsible with respect to this communication. Investment sustains risk. Please note that the value of any investment may rise or fall and that past performance is not indicative of future results and should in no event be deemed as such. This communication is not directed at and must not be acted upon by US Persons as defined in Rule 902 of Regulation S of the United States Securities Act of 1933, and is not intended and may not be used to solicit sales of investments or subscription of securities in countries where this is prohibited by the relevant authorities or legislation. Any claims arising out of or in connection with the terms and conditions of this disclaimer are governed by Dutch law.

About the author

Siu Kee Chan

Siu Kee Chan

Senior Portfolio Manager, Multi-Asset Portfolios

Experience since 2000

Business Experience

2007-to date Siu-Kee is Senior Portfolio Manager in the Multi-Asset Portfolios team within the Multi-Asset Boutique of NN Investment Partners. He is responsible for the day-to-day management of various multi-strategy portfolios 

2004-2007 Portfolio Manager in the fixed income fund management team based in London, responsible for the day-to-day management of the ABN AMRO Absolute Return Fixed Income Funds

2000-2004 Performance Analyst at ABN AMRO

2001 Management Traineeship at ABN AMRO

Qualifications

BA in Financial Economics from the University of Amsterdam in 2000

Degree of Business Economics from the Business School of Economic Studies in Amsterdam in 1999

Show more

Show more