Dutch asset management firm NN Investment Partners (NN IP) has launched the NN (L) Emerging Markets Debt Short Duration Hard Currency fund.
It invests in debt instruments issued in hard currency (USD-denominated) by emerging market sovereign and corporate issuers, with an average duration between one to three years.
Average credit rating is investment grade while the average current yield of the fund remains close to 4% .
Annemieke Coldeweijer, portfolio manager EMD corporate debt based in The Hague and Jared Lou, portfolio manager EMD hard currency based in New York will co-manage the fund. NN IP’s EM debt team has over $10bn (€8.1bn) in assets under management.
Marcelo Assalin, Head of Emerging Market Debt at NN IP commented: “Monetary policies in developed markets are expected to gradually tighten and to have potentially impact on returns of fixed income assets. Investors who are willing to mitigate such a risk factor will appreciate the Fund’s strategy of providing stable income, with low volatility and low credit risk.”
The fund is a sub-fund of the firm’s Luxembourg Sicav NN (L) (SICAV). Share classes of the sub-fund are currently registered in Luxembourg, the United Kingdom, Germany, Italy, Austria, Sweden, Finland, Denmark, Norway and The Netherlands.
As of 31 December 2017, NN IP managed €246bn in assets.