NN First Class Return Fund - Passief

Transcription

1 NN First Class Return Fund - Passief All Fund in Scope data as of end September 018 The NN First Class Selective Passive Return Fund gained.6% The global economy is still in a consolidation phase Equities main driver of fund performance Performance The fund gained.6%. This result was mainly driven by the global equity investments. Furthermore fund selection for the actively managed funds added to this result as well as on average these funds outperformed their benchmark. The global economy is still very much in a consolidation phase. While no longer accelerating at the pace of recent years, growth remains at a healthy level. Equity markets turned in a positive performance for the quarter across all regions except emerging markets and developed Asia ex-japan. The contribution from equities to the total return of the fund was positive (+3%). All equity strategies contributed positively, even the emerging markets strategy as this strategy significantly outperformed its benchmark. Investments in global real estate detracted from performance as well, approximately -0.09%. This was mainly the result from the fund underperforming its benchmark. Our strategies in the spread markets in general contributed positively as well, approximately +0.07%. During the third quarter, trade-related headlines continued to appear, but were more mixed. The strength of the US dollar took a pause too, reducing some headwinds for EM local assets. While all sub-asset classes in emerging market debt had posted negative returns during the second quarter, during the third quarter this was only the case for EM local assets. Global high yield investments contributed the most within this part of the portfolio, also driven by the outperformance of this strategy. Commodities detracted from performance, approximately -0.16%, however less than the general commodities market as the fund outperformed its benchmark. Alternative Beta on the contrary outperformed its benchmark during this period, adding approximately +0.04% to performance. Statistics ISIN code NL Inception date februari 016 Ongoing charges 0.4% Outlook One of the potential cross-currents for the global economy is the regional divergence in growth rates. The US economy is feeling a one-off sugar high from the Trump tax cuts that took effect this year, while growth in the Eurozone and Japan is encountering a soft patch. Our base case is one of re-convergence in growth patterns. A re-convergence in the developed world would support emerging markets and provide increased resilience to shocks. Risks to the base case that could lead to continued growth divergence are downside surprises in the Eurozone, Japan and emerging markets, a continuation of the dollar s appreciation and a full-blown trade war. However the direct impact on the growth outlook of the current trade measures is still limited, but the indirect impact that runs through business confidence and financial conditions could be more harmful. So far there is no evidence this is happening. Asset Class allocation Equities, 6% Real Estate, 8% Bonds, 18% Alternatives, 13% Cash, 0%

2 Fund description NN First Class Selective Passive Return Fund is a mixed fund that offers a carefully selected and diversified investment. The fund invests in multiple asset classes including equities, fixed income and alternative investments. The fund mainly invests in NN IP mutual funds and not by NN IP managed funds, including index funds and ETFs. The fund uses a risk return assumption model to periodically determine the allocation to the asset classes. The fund strives to achieve a diversified portfolio that provides an attractive return per unit of risk. Performance (%) (Net) 3 Months YTD 1 year NN FC Selective Passive Return Fund Equities 3 Months (%) Weight (%) Blackrock ISF-World index-euria BlackRock Emerging Markets Index Sub-Fun ishares Core MSCI World ETF Vanguard Global Stock Index Fund Institu Bonds* 3 Months (%) Weight (%) NN Euro Credit Fund NN (L) Global High Yield NN (L) Emerging Markets Debt HC (euro) NN (L) Emerging Markets Debt LB Real Estate* 3 Months (%) Weight (%) NN (L) Global Real Estate * Based on the gross performance of the funds (non-weighted), all figures are at end December 017. Commodities* 3 Months (%) Weight (%) NN (L) Commodity Enhanced Hedge Funds* 3 Months (%) Weight (%) NN (L) Alternative Beta Disclaimer This communication is intended for MiFID professional investors only. This communication has been prepared solely for the purpose of information and does not constitute an offer, in particular a prospectus or any invitation to treat, buy or sell any security or to participate in any trading strategy or the provision of investment services. While particular attention has been paid to the contents of this communication, no guarantee, warranty or representation, express or implied, is given to the accuracy, correctness or completeness thereof. Any information given in this communication may be subject to change or update without notice. Neither NN Investment Partners B.V., NN Investment Partners Holdings N.V. nor any other company or unit belonging to the NN Group, nor any of its directors or employees can be held directly or indirectly liable or responsible with respect to this communication. Use of the information contained in this communication is at your own risk. This communication and information contained herein must not be copied, reproduced, distributed or passed to any person other than the recipient without NN Investment Partners B.V. s prior written consent. In relation all the funds mentioned in this document, a Key Investor Information Document (KIID) has been published containing all necessary information about the product, the costs and the risks involved. The prospectus and the Key Investor Information Document (KIID) (if applicable) and other legally required documents relating to the fund are available on Investment sustains risk. Please note that the value of any investment may rise or fall and that past performance is not indicative of future results and should in no event be deemed as such. This communication is not directed at and must not be acted upon by US Persons as defined in Rule 90 of Regulation S of the United States Securities Act of 1933, and is not intended and may not be used to solicit sales of investments or subscription of securities in countries where this is prohibited by the relevant authorities or legislation. Any claims arising out of or in connection with the terms and conditions of this disclaimer are governed by Dutch law.

3 NN Liability Matching Fund - L Fund in scope All data as of end September 018 German 10-year Bund yield rose 17 bps to 0.47% We expect gradual higher yield for the safe Euro bonds 0-year EUR swap rate up 9 bps over the quarter to 1.48% Negative return of 1.4% reflection of the increase in rates; duration 1.8 years Performance During the third quarter of 018, most developed bond markets moved in relatively tight trading ranges. This was remarkable, given the fact that there continued to be headlines on Brexit, trade war, the Italian budget and some emerging markets. This relative calm was probably caused by the fact that a lot was already priced in, which made it difficult to surprise the market. Yields on 10-year German government bond yields moved between 0.3% and 0.55% during the quarter. These were very low levels, mainly explained by continued loose monetary policy and a flight-to-quality premium caused by a whole range of (geo)political worries. On balance, German 10-year yields ended 17bps higher, moving from the lower end to the upper end of the range. Over the quarter the 0-year EUR swap rate increased from 1.39% to 1.48%. At the end of the quarter, the AUM of the fund amounted to 1,55 mln. Outlook Our view is that the benign global economic backdrop, specifically healthy growth with contained inflationary pressures, will continue for several quarters. As a result, the Fed and the ECB will carry out changes in monetary policy in a very predictable way. We expect safe government bond yields to increase gradually as economic and monetary policy normalization progress further. However, spikes in uncertainty mighty drive investors temporarily into safe government bonds, and if that happens we can still expect sizeable declines in government bond yields. In the medium term we feel that the risks to our view, of gradually increasing rates, are mainly on the upside. ISIN code NL Inception date March 014 Ongoing charges 0.5% 3 Months Year to date 1 year 3 year 5 year NN Liability Matching Fund L - N Treasuries 9.7 Swaps -1.4 Cash 71.7 Duration contribution (year) Treasuries Swaps 1.81 Total

4 Fund description The NN Liability Matching Funds combine a matching portfolio tailored to individual pension goals with the practical advantages of a fund solution. By using three funds we are able to keep costs limited while maintaining high matching standards almost similar to a fully tailored institutional solution. We manage three Liability Matching Funds with different interest rate sensitivity (duration) profiles. The three funds primarily invest in Euro government bonds with a AAA rating (at purchase) and a maturity at issue of 1-3 years*. Within each of the three funds we raise the duration by interest rate swaps and bond futures. NN Liability Matching Fund (M) aims for a duration of around 4 years and LMF (L) and LMF (XL) of around 0 and 40 years respectively. The three funds are passively managed. The duration profiles of funds are constructed in such a way that when optimally combined they can closely match client specific duration profiles based on typical cashflow schemes. * When a bond rating is downgraded or the maturity drops below 1 year we do not need to sell. Duration allocation Duration swy sw5y sw10y sw0y sw30y sw40y sw50y Maturity Disclaimer This communication is intended for MiFID professional investors only. This communication has been prepared solely for the purpose of information and does not constitute an offer, in particular a prospectus or any invitation to treat, buy or sell any security or to participate in any trading strategy or the provision of investment services. While particular attention has been paid to the contents of this communication, no guarantee, warranty or representation, express or implied, is given to the accuracy, correctness or completeness thereof. Any information given in this communication may be subject to change or update without notice. Neither NN Investment Partners B.V., NN Investment Partners Holdings N.V. nor any other company or unit belonging to the NN Group, nor any of its directors or employees can be held directly or indirectly liable or responsible with respect to this communication. Use of the information contained in this communication is at your own risk. This communication and information contained herein must not be copied, reproduced, distributed or passed to any person other than the recipient without NN Investment Partners B.V. s prior written consent. In relation all the funds mentioned in this document, a Key Investor Information Document (KIID) has been published containing all necessary information about the product, the costs and the risks involved. The prospectus and the Key Investor Information Document (KIID) (if applicable) and other legally required documents relating to the fund are available on Investment sustains risk. Please note that the value of any investment may rise or fall and that past performance is not indicative of future results and should in no event be deemed as such. This communication is not directed at and must not be acted upon by US Persons as defined in Rule 90 of Regulation S of the United States Securities Act of 1933, and is not intended and may not be used to solicit sales of investments or subscription of securities in countries where this is prohibited by the relevant authorities or legislation. Any claims arising out of or in connection with the terms and conditions of this disclaimer are governed by Dutch law.

5 NN Liability Matching Fund - M Fund in scope All data as of end September 018 German 10-year Bund yield rose 17 bps to 0.47% We expect gradual higher yield for the safe Euro bonds 5-year EUR swap rate up 1 bps over the quarter to 0.39% Negative return of 0.4% reflection of the increase in rates; duration 4.8 years Performance During the third quarter of 018, most developed bond markets moved in relatively tight trading ranges. This was remarkable, given the fact that there continued to be headlines on Brexit, trade war, the Italian budget and some emerging markets. This relative calm was probably caused by the fact that a lot was already priced in, which made it difficult to surprise the market. Yields on 10-year German government bond yields moved between 0.3% and 0.55% during the quarter. These were very low levels, mainly explained by continued loose monetary policy and a flight-to-quality premium caused by a whole range of (geo)political worries. On balance, German 10-year yields ended 17bps higher, moving from the lower end to the upper end of the range. Over the quarter the 5-year EUR swap rate increased from 0.7% to 0.39%. At the end of the quarter, the AUM of the fund amounted to 910 mln. Outlook Our view is that the benign global economic backdrop, specifically healthy growth with contained inflationary pressures, will continue for several quarters. As a result, the Fed and the ECB will carry out changes in monetary policy in a very predictable way. We expect safe government bond yields to increase gradually as economic and monetary policy normalization progress further. However, spikes in uncertainty mighty drive investors temporarily into safe government bonds, and if that happens we can still expect sizeable declines in government bond yields. In the medium term we feel that the risks to our view, of gradually increasing rates, are mainly on the upside. ISIN code NL Inception date March 014 Ongoing charges 0.5% 3 Months Year to date 1 year 3 year 5 year NN Liability Matching Fund M - N Treasuries 11.5 Swaps -0.4 Cash 88.9 Duration contribution (year) Treasuries 0.4 Swaps 4.37 Totaal

6 Fund description The NN Liability Matching Funds combine a matching portfolio tailored to individual pension goals with the practical advantages of a fund solution. By using three funds we are able to keep costs limited while maintaining high matching standards almost similar to a fully tailored institutional solution. We manage three Liability Matching Funds with different interest rate sensitivity (duration) profiles. The three funds primarily invest in Euro government bonds with a AAA rating (at purchase) and a maturity at issue of 1-3 years*. Within each of the three funds we raise the duration by interest rate swaps and bond futures. NN Liability Matching Fund (M) aims for a duration of around 4 years and LMF (L) and LMF (XL) of around 0 and 40 years respectively. The three funds are passively managed. The duration profiles of funds are constructed in such a way that when optimally combined they can closely match client specific duration profiles based on typical cashflow schemes. * When a bond rating is downgraded or the maturity drops below 1 year we do not need to sell. Duration allocation 4 3 Duration swy sw5y sw10y sw0y sw30y sw40y sw50y Maturity Disclaimer This communication is intended for MiFID professional investors only. This communication has been prepared solely for the purpose of information and does not constitute an offer, in particular a prospectus or any invitation to treat, buy or sell any security or to participate in any trading strategy or the provision of investment services. While particular attention has been paid to the contents of this communication, no guarantee, warranty or representation, express or implied, is given to the accuracy, correctness or completeness thereof. Any information given in this communication may be subject to change or update without notice. Neither NN Investment Partners B.V., NN Investment Partners Holdings N.V. nor any other company or unit belonging to the NN Group, nor any of its directors or employees can be held directly or indirectly liable or responsible with respect to this communication. Use of the information contained in this communication is at your own risk. This communication and information contained herein must not be copied, reproduced, distributed or passed to any person other than the recipient without NN Investment Partners B.V. s prior written consent. In relation all the funds mentioned in this document, a Key Investor Information Document (KIID) has been published containing all necessary information about the product, the costs and the risks involved. The prospectus and the Key Investor Information Document (KIID) (if applicable) and other legally required documents relating to the fund are available on Investment sustains risk. Please note that the value of any investment may rise or fall and that past performance is not indicative of future results and should in no event be deemed as such. This communication is not directed at and must not be acted upon by US Persons as defined in Rule 90 of Regulation S of the United States Securities Act of 1933, and is not intended and may not be used to solicit sales of investments or subscription of securities in countries where this is prohibited by the relevant authorities or legislation. Any claims arising out of or in connection with the terms and conditions of this disclaimer are governed by Dutch law.

7 NN Liability Matching Fund - XL Fund in scope All data as of end September 018 German 10-year Bund yield rose 17 bps to 0.47% We expect gradual higher yield for the safe Euro bonds 40-year EUR swap rate up 8 bps over the quarter to 1.5% Negative return of.8% reflection of the increase in rates; duration 40. years Performance During the third quarter of 018, most developed bond markets moved in relatively tight trading ranges. This was remarkable, given the fact that there continued to be headlines on Brexit, trade war, the Italian budget and some emerging markets. This relative calm was probably caused by the fact that a lot was already priced in, which made it difficult to surprise the market. Yields on 10-year German government bond yields moved between 0.3% and 0.55% during the quarter. These were very low levels, mainly explained by continued loose monetary policy and a flight-to-quality premium caused by a whole range of (geo)political worries. On balance, German 10-year yields ended 17bps higher, moving from the lower end to the upper end of the range. Over the quarter the 40-year EUR swap rate increased from 1.44% to 1.5%. At the end of the quarter, the AUM of the fund amounted to 1,187 mln. Outlook Our view is that the benign global economic backdrop, specifically healthy growth with contained inflationary pressures, will continue for several quarters. As a result, the Fed and the ECB will carry out changes in monetary policy in a very predictable way. We expect safe government bond yields to increase gradually as economic and monetary policy normalization progress further. However, spikes in uncertainty mighty drive investors temporarily into safe government bonds, and if that happens we can still expect sizeable declines in government bond yields. In the medium term we feel that the risks to our view, of gradually increasing rates, are mainly on the upside. ISIN code NL Inception date March 014 Ongoing charges 0.5% 3 Months Year to 1 year 3 year date 5 year NN Liability Matching Fund XL - N Treasuries 46. Swaps -1. Cash 55.1 Duration contribution (year) Treasuries Swaps 40.5 Total

8 Fund description The NN Liability Matching Funds combine a matching portfolio tailored to individual pension goals with the practical advantages of a fund solution. By using three funds we are able to keep costs limited while maintaining high matching standards almost similar to a fully tailored institutional solution. We manage three Liability Matching Funds with different interest rate sensitivity (duration) profiles. The three funds primarily invest in Euro government bonds with a AAA rating (at purchase) and a maturity at issue of 1-3 years*. Within each of the three funds we raise the duration by interest rate swaps and bond futures. NN Liability Matching Fund (M) aims for a duration of around 4 years and LMF (L) and LMF (XL) of around 0 and 40 years respectively. The three funds are passively managed. The duration profiles of funds are constructed in such a way that when optimally combined they can closely match client specific duration profiles based on typical cashflow schemes. * When a bond rating is downgraded or the maturity drops below 1 year we do not need to sell. Duration allocation 0,0 15,0 Duration 10,0 5,0 0,0-5,0 swy sw5y sw10y sw0y sw30y sw40y sw50y Maturity Disclaimer This communication is intended for MiFID professional investors only. This communication has been prepared solely for the purpose of information and does not constitute an offer, in particular a prospectus or any invitation to treat, buy or sell any security or to participate in any trading strategy or the provision of investment services. While particular attention has been paid to the contents of this communication, no guarantee, warranty or representation, express or implied, is given to the accuracy, correctness or completeness thereof. Any information given in this communication may be subject to change or update without notice. Neither NN Investment Partners B.V., NN Investment Partners Holdings N.V. nor any other company or unit belonging to the NN Group, nor any of its directors or employees can be held directly or indirectly liable or responsible with respect to this communication. Use of the information contained in this communication is at your own risk. This communication and information contained herein must not be copied, reproduced, distributed or passed to any person other than the recipient without NN Investment Partners B.V. s prior written consent. In relation all the funds mentioned in this document, a Key Investor Information Document (KIID) has been published containing all necessary information about the product, the costs and the risks involved. The prospectus and the Key Investor Information Document (KIID) (if applicable) and other legally required documents relating to the fund are available on Investment sustains risk. Please note that the value of any investment may rise or fall and that past performance is not indicative of future results and should in no event be deemed as such. This communication is not directed at and must not be acted upon by US Persons as defined in Rule 90 of Regulation S of the United States Securities Act of 1933, and is not intended and may not be used to solicit sales of investments or subscription of securities in countries where this is prohibited by the relevant authorities or legislation. Any claims arising out of or in connection with the terms and conditions of this disclaimer are governed by Dutch law.