NN IP Reaches €3bn Across Green Bond Strategies10.20.2020
- Increased client demand in green bonds strategies has led to significant inflows: NN IP now manages EUR 3 billion in AuM in dedicated green bond solutions
- NN IP is committed to its green bond strategy and believes that green bonds have become a mainstream fixed income product.
- By expanding its team with three new hires NN IP has one of the largest dedicated green bonds teams in the asset management industry
After four years since launching its first green bonds strategy, NN Investment Partners (NN IP) has now reached the milestone of EUR 3 billion assets under management (AuM) across the green bond strategies and mandates.
NN IP wholeheartedly believes that green bonds make for an attractive proposition for investors seeking to make an impact, and that these are a viable replacement for regular bonds in a fixed income portfolio. This conviction and focus have been the major drivers for the success of the strategy and explain the significant inflow into the asset class. Earlier this year, NN IP announced the launch of its NN (L) Corporate Green Bond fund. This fund complemented the existing range (the NN (L) Green Bonds fund and the NN (L) Green Bonds Short Duration fund) by focusing solely on corporate bonds.
Bram Bos, Lead Portfolio Manager Green Bonds at NN Investment Partners: “The growth of our dedicated green bonds assets is a result from both growing interest of our clients in green bonds as well as the fact that we are being seen as thought leader in green bonds. This is emphasized by our large and dedicated green bond team, the broad range of green bond products we are offering and the continuous strong performance of our green bond strategies.”
The fast growth of the green bond market, along with the increasing number of sustainable bond labels and green bond taxonomies have motivated NN IP to significantly expand the green bond team. This gives NN IP the possibility to further improve its green bond strategy, and maintain its thought leadership position with regards to the green bonds market. In September 2020, NN IP added three new hires to its green bonds team. Douglas Farquhar joined NN IP as Green Bonds Client Portfolio Manager. Further, two dedicated green bonds analysts, Isobel Edwards and Kaili Mao will take responsibility for the high green bond standards which NN IP has embraced since the inception of the green bond strategy.
Bos continues: “I am excited to welcome Douglas Farquhar, Isobel Edwards and Kaili Mao to our team to enhance our green bond analysis capacity, develop our green bond framework and increase our client outreach. They are joining us at the right moment, as the steep growth in the green bond market continues, with investors increasingly considering green bonds in a broader context, not solely as an impact investment. Green bonds are becoming more attractive by the day, both from a financial and risk-return perspective, as well as the additional environmental benefits the bonds can have. Regular bond investors have the opportunity to greenify their fixed income portfolio at no additional cost.”
As a result of these hires, the team expanded to a total of 6 green bonds specialists, making it one of the largest dedicated green bonds teams in the asset management industry. Combining dedicated green bond and credit analysts in one team is a unique feature and improves the green quality of the portfolios, while avoiding greenwashing at the same time. This is one of the key strengths of NN IP’s green bond strategy.
The funds mentioned are sub-funds of NN (L), established in Luxembourg. NN (L) is duly authorised by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg. Selected share classes of the sub-fund are currently registered in Luxembourg, Austria, Belgium, Switzerland, Germany, Denmark, Spain, Finland, France, United Kingdom, Italy, Netherlands, Norway and Sweden.
First quarter issuance was above $200bn despite unfavourable conditions for fixed income.
The collaboration increases access to corporate bond liquidity.
The acquisition was announced on 4 May 2022.
Market conditions have been unfavourable for primary issuance.
European trading in fixed income instruments is highly fragmented and non-transparent.