First Class Multi Asset

Strategy description

The First Class Multi-Asset Strategy is a globally diversified , benchmark unaware strategy aiming for long-term capital growth and designed to actively respond to changing market environments.

Objective

The strategy aims to deliver an annualised return of 1-month EURIBOR + 3% before fees over a five year period with a clearly defined risk budget (target ex-ante volatility 5%; maximum 10%).

Key information

Investment universe Multi-asset; bonds (government bonds, investment grade and non-investment grade bonds),equities, money-markets, real-estate, commodities, currencies
Investment style Diversified capital growth
Return objective EURIBOR +3% annualised before fees over 5-year horizon
Risk target Annualised ex-ante volatility of 5%, max 10%
Base currency EUR

Key elements

  • All-in-one Multi-Asset solution
  • Your entry into a world of Opportunities
  • A clear return objective
  • Aiming to avoid negative surprises
  • Liquid and transparent
  • No net short positions at an asset class level allowed

Documents

Latest insights

Investment process

We aim to achieve the investment objective by harvesting the longterm risk premiums, through tactical positioning in a risk aware and robust manner and from bottom-up securities selection. The longterm risk premiums are captured by applying a risk budgeting approach where the risk budget is equally divided between ‘relatively safer’ assets and risky assets to arrive at the strategic allocation. The final portfolio allocations are determined during the tactical asset allocation process. In this process our view generation is driven by both quantitative (fundamental and behavioral) signals as well as qualitative judgment.

Exposure to risky assets can be reduced to 0% in case risky assets become extremely volatile and/ or we don’t deem them attractive anymore from a risk-return perspective. On the other hand if risks decrease and/or if we see more opportunities, we can increase our allocation to more riskier assets which typically offer higher returns. This dynamic asset allocation process enables us to exploit attractive investment opportunities when they arise. At least 50% is exposed to ‘relatively safer’ assets (e.g. low risk government bonds). Up to 50% can be exposed to more risky asset classes such as spread products, equities, indirect real estate and (tactically) commodities.

Furthermore we can take long and short positions using derivatives, but no net short positions at an asset class level, in order to achieve the objectives.


NN Investment Partners

+44 (0) 207 382 1332

Key elements

  • All-in-one Multi-Asset solution
  • Your entry into a world of Opportunities
  • A clear return objective
  • Aiming to avoid negative surprises
  • Liquid and transparent
  • No net short positions at an asset class level allowed

Documents

Latest insights

Ewout van Schaick

Ewout van Schaick

Head of Multi-Asset

Experience since 1997

Niels de Visser

Niels de Visser

Senior Portfolio Manager, Multi-Asset Portfolios

Experience since 1996

Jesse Borst

Jesse Borst

Portfolio Manager, Flexible Multi-Asset Portfolios

A coffee with Ewout van Schaick: talking about a stable ride in volatile markets

Ewout van Schaick, Head of Multi-Asset

NN Investment Partners

+44 (0) 207 382 1332

Key elements

  • All-in-one Multi-Asset solution
  • Your entry into a world of Opportunities
  • A clear return objective
  • Aiming to avoid negative surprises
  • Liquid and transparent
  • No net short positions at an asset class level allowed

Documents

Latest insights