NN Investment Partners (NN IP) has launched NN (L) global convertible bond fund, which 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 which celebrated its 6th year anniversary in April 2018.
It addresses growing global investor demand for exposure to the convertible asset class in a tightening monetary environment with increasing equity volatility. Equity return potential with lower downside and low exposure to interest rates make convertible bonds attractive. The new Fund is tailored for clients seeking a diversified convertible exposure.
It will be managed by NN IP’s Global Convertible Strategies Team. It leverages off the team’s established security selection and credit processes while keeping a strong focus on liquidity and diversification. The fund has a target annual return of 1% gross outperformance of its benchmark.
The new fund combines a selection of the most liquid securities within the opportunities fund, with a credit, liquidity and ESG-driven benchmark selection. With this approach, the Fund aims for a diversified and scalable exposure to the asset class. The Fund launched with a significant investment from an existing institutional convertible bond client, endorsing the capabilities of NN IP’s team. Total convertible bond assets under management stood at $1.5bn.