News & Commentary
• Initiatives by governments and stakeholders to reduce the harmful use of alcohol are essential steps to build a more sustainable world • NN Investment Partners believes that engaging with alcohol producers is a better approach than excluding them from portfolios and therefore developed objectives on responsible drinking marketing, human rights, carbon footprint and water scarcity • ‘Premiumisation trend’ gives beverage producers significant opportunity to improve profitability
NN Investment Partners (NN IP), the asset manager of NN Group, has announced today the intention to consolidate its Luxembourg management company, NN Investment Partners Luxembourg S.A., with NN Investment Partners B.V., the Dutch licensed entity.
• NN Investment Partners (NN IP) sees investment in sanitation as an opportunity for investors to make a positive impact while achieving attractive returns • NN IP invests in companies with strong innovative business models that offer transformational solutions for societal challenges
• Recovery of deliveries after diesel scandal provides opportunities in car makers and suppliers • China is likely to stimulate car sector to sustain GDP growth and meet government targets • Near-recession valuations after a difficult 2018 and increasing expectations can help car suppliers
• Infrastructure assets can be attractive for investors while delivering economic and social benefits • The NN (L) European Sustainable Infrastructure Debt fund addresses growing investor demand for high quality infrastructure debt investments with robust and predictable cash flows generated from assets that contribute to a more sustainable future
• US to face moderate growth slowdown as stimulus effect wanes and Fed tightening is starting to be felt • Economic growth in Europe and Japan is starting to re-converge to US growth in 2019 • As growth in developed markets converges, we prefer emerging markets and European assets to US • Emerging markets face challenges from trade tariffs and normalising US monetary policy • Individual investors expect global growth to decelerate, according to a poll by NN Investment Partners • NN Investment Partners prefers credit risk instead of duration as monetary policy slowly returns to normal
• The Oil & Gas sector is particularly exposed to associated risks of climate change • NN IP focuses on the sector to encourage transparency about activities and risks
• Including measures of engagement and intentionality would enhance ‘Impact’ gauges • Improved reporting and transparency, the rise of more data sources and the standardisation of measurement methodologies will spur progress
If we look past negative headlines regarding tariffs and trade wars, the world is currently seeing healthy economic growth and upward pressure on interest rates due to the phasing out of monetary stimulus. Such an environment presents a buying opportunity for Convertible Bonds (CBs). CBs’ equity-like characteristics mean they benefit from economic growth while they are only modestly impacted by rising rates because of their low duration, which averages 1.8 years across the asset class.
• Economic slowdown: does it present headwinds for value investing? • Targeting sustainable dividends is key to outperforming the market