News & Commentary

Europe’s High Yield bond market will soon present strong entry point to investors

16/7/18 Sjors Haverkamp

Europe’s High-Yield Bonds market will soon present a strong entry point to investors with yields of approximately 4% on offer following re-pricing in recent months caused by new issuance, trade war fears and turbulent Italian politics, according to NN Investment partners (NN IP). Re-pricing in the market has seen yields rise from below 3% since the end of last year.

Strong global growth in Green Bond portfolios: NN IP manages the world’s largest Green Bond Fund

09/7/18 Bram Bos

In the second quarter of 2018, NN Investment Partners (NN IP) saw a significant increase in the management of green bond portfolios. Assets under management increased from EUR 20 million in 2016 to approximately EUR 900 million in July 2018 and is expected to grow rapidly to over EUR 1 billion.

Illiquidity spreads under pressure: trade and export finance assets offer an attractive alternative

02/7/18 Suresh Hegde

• Compensation for illiquidity in private markets under pressure from over crowding • Trade and export finance markets offer an attractive alternative source of return • Monetising operational complexity in low credit-risk assets and access stable levels of illiquidity compensation can be beneficial for investors

H2 2018 outlook: Consolidation with near-term sunny spells

27/6/18 Valentijn van Nieuwenhuijzen

• Near-term indicators for the global economy are positive; consumer spending rebounds and capex is supported by rising profits and strong confidence • Even if the environment looks supportive for risky assets, several risk factors linked to trade and Eurozone politics may temper investor sentiment • Equities receive support by earnings growth, an attractive risk premium and cautious investor positioning • The risk/reward equation has deteriorated, better diversification into new alpha sources is key. Opportunities exist in Multi Asset Credit solutions, Short Duration Emerging Markets Debt, Frontier Markets Debt, Alternative Credit, Sustainable Equity, Factor Investing and Convertibles

Short duration EMD combines higher yields with protection against rising rates

21/6/18 Annemieke Coldeweijer

Emerging Markets Debt (EMD) continues to offer strong yield spreads to developed markets, while investing in shorter duration bonds guards against rising interest rates, suppresses volatility and presents beneficial reinvestment opportunities. As such, short duration EMD hard currency (HC) offers an option for investors seeking strong risk adjusted returns in their fixed income portfolios.

Long term pay off to selling volatility

14/6/18 Stan Verhoeven

After years of stability, the return of volatility to global markets in February 2018 saw those shorting it suffer substantial drawdowns. This led many investors to question the appropriateness of such a strategy. NN Investment Partners (NN IP) demonstrates the continued attraction of systematically selling volatility, regardless of the prevailing level of volatility, with expected returns exceeding losses over the long term.

Research shows investors see benefits in Emerging Market Debt over long and short terms

12/6/18 Marcelo Assalin

The historical risk-return profile of Emerging Market Debt (EMD) compares favourably with its developed market counterparts: investors willing to tolerate the inherent volatility have been rewarded with higher returns over the longer term, thanks to a compelling risk premium.

NN Investment Partners launches NN (L) Global Convertible Bond fund

09/5/18 Ivan Nikolov

• 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.

Global growth spurs convertible bonds opportunities, strong issuance may be ahead

26/4/18 Jasper van Ingen

• 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

Dutch NN-FMO Emerging Markets Loans Fund overshoots first close target at USD 250 million

24/4/18 Hester Borrie

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.