NN First Class Return Fund

Transcription

1 NN First Class Return Fund Fund in Scope All data as of end March 017 The NN First Class Return Fund gained 4.0% Allocation to sustainable equities significantly increased Global equities continued their good performance Performance Global equities continued their good performance of the second half of 016 and rose 5.1% (in euro terms) in the first quarter of 017. Among the regions we saw a reversal of fourth-quarter 016 performances. Emerging markets gained 10% and were the big winners while US stocks, rising 4.8%, slightly underperformed. Euro IG credit spreads tightened at the start of the year, but the tone quickly turned more cautious. Global high yield also continued its strong performance of the end of last year through January and February. The positive trend of the first two months reversed in March, however. After a strong decline in January and February, global high yield spreads widened in March as investors started to take profit after the rally in high yield bonds which lasted about a year. One of the triggers was the decline in the oil price. On average the equity funds outperformed their respective benchmarks. The overall equity contribution to the fund s performance was a positive 3.6% All fixed income funds (EMD, investment grade credits and high yield) posted a positive contribution, despite the volatility, to the total return (+0.5%). On average the funds outperformed their respective benchmarks except for NN (L) Global High Yield. Commodities posted negative returns, which led, despite the outperformance of the commodity fund to a negative contribution of -0.07%. Real estate posted positive results, leading to a 0.04% contribution to the total return. During the quarter, we have sold out of the NN (L) Global Equity and NN (L) Global High Dividend strategy and replaced the allocation to sustainable equities. Statistics ISIN code NL Inception date januari 013 Ongoing charges 0.4% Morningstar Outlook In our base case we expect a medium term moderate global economic recovery. From a monetary policy perspective we expect the Fed to continue on the gradual path of normalizing monetary conditions, which implies a process of gradually increasing yields in the coming years. Political uncertainty is high, but, at the same time, strong economic data continues to be a support for risky assets. The outlook for equities remains positive. Macroeconomic data continue to improve, and earnings growth looks likely to accelerate into double digits this year as the financial and commodities sectors make a bigger contribution while higher nominal growth and companies improved pricing power should lead to bigger margins. The macro and earnings data trends continue to support the reflation trade, which has lost some of its strength due to less-favourable bond yields, valuations and positioning. Asset Class allocation Equities, 63% Real Estate, 7% Bonds, 17% Alternatives, 13% Cash, 1%

2 Fund description NN First Class 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 invests only in investment funds managed by NN Investment Partners. 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. NN First Class Return Fund - N 3 Months Year to date 1 Year 3 Year (ann) Net return Current allocation of the underlying strategies* Equities 3 Months Year to date 1 Year 3 Year (ann) Weight** NN Global Sustainable Equity - mandate 4.1*** 34.5 NN (L) Global Sustainable Equity NN (L) EM High Dividend Real Estate 3 Months Year to date 1 Year 3 Year (ann) Weight** NN (L) Global Real Estate Bonds 3 Months Year to date 1 Year 3 Year (ann) Weight** NN Euro Credit Fund NN (L) Global High Yield NN (L) Emerging Markets Debt HC (euro) NN (L) Emerging Markets Debt LB Commodities 3 Months Year to date 1 Year 3 Year (ann) Weight** NN (L) Commodity Enhanced Hedge Funds 3 Months Year to date 1 Year 3 Year (ann) Weight** NN (L) Alternative Beta * The underlying strategies of the NN First Class Return Fund are the gross returns. The fund costs (ongoing charges) will only be reflected in the returns of the NN First Class Return Fund. ** The figures shown in the weight column are based on the strategy weights at quarter end. Therefore the returns cannot be calculated based on these weights. *** The inception date for the Global Sustainable Equity - mandate is 7 February 017. Disclaimer The elements contained in this document have been prepared solely for the purpose of information and do 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. Investors should seek their own advice if in doubt about the suitability of any investment. While particular attention has been paid to the contents of this document, no guarantee, warranty or representation, express or implied, is given to the accuracy, correctness or completeness thereof. Any information given in this document may be subject to change or update without notice. Neither NN Investment Partners Holdings N.V. nor any other company or unit belonging to the NN Group, nor any of its officers, directors or employees can be held direct or indirect liable or responsible with respect to the information and/or recommendations of any kind expressed herein. Investment sustains risks. Please note that the value of your investment may rise or fall and also that past performance is not indicative of future results and shall in no event be deemed as such. This document and information contained herein must not be copied, reproduced, distributed or passed to any person at any time without our prior written consent. For more detailed information about the fund we refer to the prospectus and the corresponding supplements. 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. Do not take unnecessary risk. Read the prospectus and the KIID before investing. Investments are accompanied by risks. The value of your investments depends in part upon developments on the financial markets. In addition, each fund has its own specific risks. See the prospectus for fund-specific costs and risks. The prospectus, supplement and the Key Investor Information Document are available on the following website: NN Investment Partners B.V. is the manager of all NN Investment Partners funds and, in that capacity, and pursuant to the Dutch Financial Markets Supervisory Act, possesses the applicable permits granted by the Netherlands Financial Markets Authority. All investment funds are registered with the Netherlands Financial Markets Authority. This document is not directed at, and must not be acted upon by citizens of the United States (US) and is otherwise only directed at persons residing in jurisdictions where the relevant share classes/(sub)funds are authorised for distribution or where no such authorisation is required. 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 - M Fund in scope All data as of end March 017 Yields on Euro government bonds volatile intra-quarter but remain at similar levels since the beginning of 017 Global bond most likely to increase, however, some political risk still present 5-year EUR swap rates up 10 bps over the quarter Negative return of 0.4% reflection of increase in rates; duration 4.4 years Performance Over the quarter the fund realized a net return of -0.4%. This decrease reflects the increase in Euro swap rates. Over the quarter 5-year EUR swap rate increased from 0.08% to 0.18%.The overall duration of the fund was 4.4 years per end of December. At the end of the quarter, the AUM of the fund amounted to 519 mln. Outlook Fundamentals remain supportive of growth-oriented assets, like equities, credits, real estate and commodities, but the upcoming French elections and some market behavioural elements hint of short-term correction risks. Political and policy risks could temper or even cancel out the improvements in growth and confidence in the coming one or two years. The result of the showdown between these two opposing forces will probably determine the growth and market performances. We expect nominal GDP growth (growth including inflation) in developed markets (DM) to increase from.3% in 016 to 3.7% this year. A more reflationary outlook for developed markets, driven by fiscal stimulus, would further support growth. In the global bond and equity markets we have seen two main trends emerging since the summer of 016: a rise in government bond yields in developed markets and the rotation from defensive and yield-sensitive sectors towards cyclical sectors. We expect this reflation theme to persist in the coming quarters, albeit probably at a somewhat lower intensity. ISIN code NL Inception date January 013 Ongoing charges 0.5% 3 Months Year to date 1 year 3 year (ann) NN Liability Matching Fund M - N Treasuries 10.1 Swaps -0.3 Cash 90. Duration contribution (year) Treasuries 0.31 Swaps 4.13 Totaal

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 3 Duration swy sw5y sw7y sw10y sw0y sw30y sw40y sw50y Maturity Disclaimer The elements contained in this document have been prepared solely for the purpose of information and do 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. Investors should seek their own advice if in doubt about the suitability of any investment. While particular attention has been paid to the contents of this document, no guarantee, warranty or representation, express or implied, is given to the accuracy, correctness or completeness thereof. Any information given in this document may be subject to change or update without notice. Neither NN Investment Partners Holdings N.V. nor any other company or unit belonging to the NN Group, nor any of its officers, directors or employees can be held direct or indirect liable or responsible with respect to the information and/or recommendations of any kind expressed herein. Investment sustains risks. Please note that the value of your investment may rise or fall and also that past performance is not indicative of future results and shall in no event be deemed as such. This document and information contained herein must not be copied, reproduced, distributed or passed to any person at any time without our prior written consent. For more detailed information about the fund we refer to the prospectus and the corresponding supplements. 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. Do not take unnecessary risk. Read the prospectus and the KIID before investing. Investments are accompanied by risks. The value of your investments depends in part upon developments on the financial markets. In addition, each fund has its own specific risks. See the prospectus for fund-specific costs and risks. The prospectus, supplement and the Key Investor Information Document are available on the following website: NN Investment Partners B.V. is the manager of all NN Investment Partners funds and, in that capacity, and pursuant to the Dutch Financial Markets Supervisory Act, possesses the applicable permits granted by the Netherlands Financial Markets Authority. All investment funds are registered with the Netherlands Financial Markets Authority. This document is not directed at, and must not be acted upon by citizens of the United States (US) and is otherwise only directed at persons residing in jurisdictions where the relevant share classes/(sub)funds are authorised for distribution or where no such authorisation is required. 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 - L Fund in scope All data as of end March 017 Yields on Euro government bonds volatile intra-quarter but remain at similar levels since the beginning of 017 Global bond most likely to increase, however, some political risk still present 0-year EUR swap rate up 13 bps over the quarter Negative return of.6% reflection of increase in rates; duration 1.8 years Performance Over the quarter the fund realized a net return of -.6%. This decrease reflects the increase in Euro swap rates. Over the quarter the 0-year EUR swap rate increased from 1.17% to 1.30%. During the quarter the overall duration of the fund was mainly unchanged at 1.8 years per end of March. At the end of the quarter, the AUM of the fund amounted to 87 mln. Outlook Fundamentals remain supportive of growth-oriented assets, like equities, credits, real estate and commodities, but the upcoming French elections and some market behavioural elements hint of short-term correction risks. Political and policy risks could temper or even cancel out the improvements in growth and confidence in the coming one or two years. The result of the showdown between these two opposing forces will probably determine the growth and market performances. We expect nominal GDP growth (growth including inflation) in developed markets (DM) to increase from.3% in 016 to 3.7% this year. A more reflationary outlook for developed markets, driven by fiscal stimulus, would further support growth. In the global bond and equity markets we have seen two main trends emerging since the summer of 016: a rise in government bond yields in developed markets and the rotation from defensive and yield-sensitive sectors towards cyclical sectors. We expect this reflation theme to persist in the coming quarters, albeit probably at a somewhat lower intensity. ISIN code NL Inception date January 013 Ongoing charges 0.5% 3 Months Year to date 1 year 3 year (ann) NN Liability Matching Fund L - N Treasuries 30.9 Swaps -0.4 Cash 69.4 Duration contribution (year) Treasuries -0. Swaps.00 Total

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 Duration swy sw5y sw7y sw10y sw0y sw30y sw40y sw50y Maturity Disclaimer The elements contained in this document have been prepared solely for the purpose of information and do 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. Investors should seek their own advice if in doubt about the suitability of any investment. While particular attention has been paid to the contents of this document, no guarantee, warranty or representation, express or implied, is given to the accuracy, correctness or completeness thereof. Any information given in this document may be subject to change or update without notice. Neither NN Investment Partners Holdings N.V. nor any other company or unit belonging to the NN Group, nor any of its officers, directors or employees can be held direct or indirect liable or responsible with respect to the information and/or recommendations of any kind expressed herein. Investment sustains risks. Please note that the value of your investment may rise or fall and also that past performance is not indicative of future results and shall in no event be deemed as such. This document and information contained herein must not be copied, reproduced, distributed or passed to any person at any time without our prior written consent. For more detailed information about the fund we refer to the prospectus and the corresponding supplements. 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. Do not take unnecessary risk. Read the prospectus and the KIID before investing. Investments are accompanied by risks. The value of your investments depends in part upon developments on the financial markets. In addition, each fund has its own specific risks. See the prospectus for fund-specific costs and risks. The prospectus, supplement and the Key Investor Information Document are available on the following website: NN Investment Partners B.V. is the manager of all NN Investment Partners funds and, in that capacity, and pursuant to the Dutch Financial Markets Supervisory Act, possesses the applicable permits granted by the Netherlands Financial Markets Authority. All investment funds are registered with the Netherlands Financial Markets Authority. This document is not directed at, and must not be acted upon by citizens of the United States (US) and is otherwise only directed at persons residing in jurisdictions where the relevant share classes/(sub)funds are authorised for distribution or where no such authorisation is required. 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 March 017 Yields on Euro government bonds volatile intra-quarter but remain at similar levels since the beginning of 017 Global bond most likely to increase, however, some political risk still present 40-year EUR swap rates up 17 bps over the quarter Negative return of 6.9% reflection of increase in rates; duration 40.5 years Performance Over the quarter the fund realized a net return of-6.9%. This decrease reflects the increase in Euro swap rates. Over the quarter the 40-year EUR swap rate increased by 17 basis points to 1.40%. The overall duration of the fund was 40.5 years per end of March. At the end of the quarter, the AUM of the fund amounted to 56 mln. Outlook Fundamentals remain supportive of growth-oriented assets, like equities, credits, real estate and commodities, but the upcoming French elections and some market behavioural elements hint of short-term correction risks. Political and policy risks could temper or even cancel out the improvements in growth and confidence in the coming one or two years. The result of the showdown between these two opposing forces will probably determine the growth and market performances. We expect nominal GDP growth (growth including inflation) in developed markets (DM) to increase from.3% in 016 to 3.7% this year. A more reflationary outlook for developed markets, driven by fiscal stimulus, would further support growth. In the global bond and equity markets we have seen two main trends emerging since the summer of 016: a rise in government bond yields in developed markets and the rotation from defensive and yield-sensitive sectors towards cyclical sectors. We expect this reflation theme to persist in the coming quarters, albeit probably at a somewhat lower intensity. ISIN code NL Inception date January 013 Ongoing charges 0.5% 3 Months Year to date 1 year 3 year (ann) NN Liability Matching Fund XL - N Treasuries 50.0 Swaps -1.6 Cash 51.5 Duration contribution (year) Treasuries 0.0 Swaps 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 sw7y sw10y sw0y sw30y sw40y sw50y Maturity Disclaimer The elements contained in this document have been prepared solely for the purpose of information and do 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. Investors should seek their own advice if in doubt about the suitability of any investment. While particular attention has been paid to the contents of this document, no guarantee, warranty or representation, express or implied, is given to the accuracy, correctness or completeness thereof. Any information given in this document may be subject to change or update without notice. Neither NN Investment Partners Holdings N.V. nor any other company or unit belonging to the NN Group, nor any of its officers, directors or employees can be held direct or indirect liable or responsible with respect to the information and/or recommendations of any kind expressed herein. Investment sustains risks. Please note that the value of your investment may rise or fall and also that past performance is not indicative of future results and shall in no event be deemed as such. This document and information contained herein must not be copied, reproduced, distributed or passed to any person at any time without our prior written consent. For more detailed information about the fund we refer to the prospectus and the corresponding supplements. 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. Do not take unnecessary risk. Read the prospectus and the KIID before investing. Investments are accompanied by risks. The value of your investments depends in part upon developments on the financial markets. In addition, each fund has its own specific risks. See the prospectus for fund-specific costs and risks. The prospectus, supplement and the Key Investor Information Document are available on the following website: NN Investment Partners B.V. is the manager of all NN Investment Partners funds and, in that capacity, and pursuant to the Dutch Financial Markets Supervisory Act, possesses the applicable permits granted by the Netherlands Financial Markets Authority. All investment funds are registered with the Netherlands Financial Markets Authority. This document is not directed at, and must not be acted upon by citizens of the United States (US) and is otherwise only directed at persons residing in jurisdictions where the relevant share classes/(sub)funds are authorised for distribution or where no such authorisation is required. Any claims arising out of or in connection with the terms and conditions of this disclaimer are governed by Dutch law.