The economic, political and technological developments have made the last two decades a dynamic period in Europe. NN Investment Partners celebrates its twentieth anniversary this month of investing in the European corporate bond market, during which it reshaped its investment process after the global financial crisis.
This approach helped the team to offer superior performance to its investors in all the years since 2010. NN IP has pioneered the launch of several credit strategies in euros, including one of the first green bonds and other credit investment funds. sustainable. The manager now has 32,000 million euros in loans denominated in euros.
To celebrate its twentieth anniversary in the European credit, NN IP has examined the key lessons it has learned in a new document entitled "Diverse and active: a style for all seasons", which will soon be available upon request. These observations include the importance of risk controls, the diversification of the sector and the patented research style of the manager.
Greater green bond fund
"We have a long history in European credit, dating back to 1998, when we were one of the first to launch our credit strategy in euros even before the introduction of the euro in the stock and bond markets in 1999. From a perspective For investment, the global financial crisis was certainly the most important lesson in 2008 and early 2009. Because of what we learned then, we have fundamentally changed our investment process, giving a greater focus to risk controls, "says Roel Jansen, co-manager of the Euro Investment Grade of NN Investment Partners.
Evolution continued to expand the range towards sustainability. The fastest growing range of credit products includes the Euro Sustainable Credit strategy , which was launched in 2011 and now has 1,930 million euros under management, and its Euro Green Bond strategy , which was launched in 2016.
The green bond strategy is now the largest green bond fund in the world with 920 million euros, due to the global growth of the green bond market and the growing demand from the retail and institutional sector. As a pioneer in green bonds, NN IP has focused on so-called 'dark green bonds' since 2014 and evaluates green bond issues on its own.
NN IP defines the sustainability credentials of bond issuers based on their own direct commitment to the managers of the companies instead of relying solely on the ratings they receive from third parties and other agencies.
The demand for sustainable credit strategies is increasing strongly and we predict that there will be even more demand for sustainable credit funds in the future. But as sustainable product offerings expand rapidly, investors must be aware of the risk that their managers may overlook . Especially in the green bond market, it could be that they invest in 'laundered' assets because they are based solely on ratings, instead of looking closely at the companies and projects that issue the bonds, "adds Jansen.
"For the future, we continue to develop our responsible investment approach and continue to look for new data sources and return opportunities.We are currently considering a factorial approach to the process, such as the value assignment ." Behavior analysis has also been introduced along with the fundamental analysis of the investment process ", the manager concludes.
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