NN First Class Return Fund - Passief

Transcription

1 NN First Class Return Fund - Passief All Fund in Scope data as of end June 017 The NN First Class Selective Passive Return Fund lost 1.8% in the second quarter of 017 Global equities continued to move upward in the quarter in local currencies but not in Euro Euro appreciated strongly versus the USD Performance Global equities continued to move upward in the second quarter of the year. In local currencies that is, because measured in euros most regions faced losses. The US dollar was weak in the past quarter versus other major currencies such as the euro. The euro gained 6.6% against the dollar in the past three months. So while in US dollar terms the MSCI World rose 4.%, it lost.3% measured in euros. Measured in local currencies, emerging markets outperformed developed markets, as was the case in the first quarter. The contribution from equities to the total return of the fund was negative (-1.38%) mainly due to the USD depreciation that impacted equity returns in Euro Europe has shown significant progress with improving labour markets and business sentiment, although inflation remains low. Corporate investment grade (IG) bonds posted a positive absolute return, just like global high yield. EMD continued its strong performance of the beginning of the year in the second quarter. Economic data remain good, portfolio flows steady and the positive trends in EM spreads, local interest rates and exchange rates are intact. The contribution from fixed income to the total return was negative (-0.07%) which was mainly the result from our investment in EMD local Bonds that decreased in EUR terms by almost 3%.The high yield and credit investments added positively to the total return. Statistics ISIN code NL Inception date februari 016 Ongoing charges 0.4% Outlook Global growth is looking more balanced, with a strong feedback loop between income and spending in reaction to the improvement in global profits and confidence. Alignment between final demand and global industrial production momentum, as well as the balance between consumer spending and capital industrial production is also getting better. Momentum in emerging markets (EM) is improving, as evidenced by confidence and credit flow data. We expect nominal GDP growth (growth including inflation) in developed markets (DM) to increase from.4% in 016 to 3.9% this year. For equities, the current environment is supportive: improving macro data, accelerating earnings growth and easy monetary policy, all of which create room for higher equity multiples. Political and policy risks are in no short supply. These include doubts about the effectiveness of the US administration, monetary policy normalization, European integration, alleged Russian intervention in US and European election campaigns, the conflict in the Middle East, and the unpredictability of the North Korean regime. Still, we should keep in mind these types of risk are around most of the time. Asset Class allocation Equities, 6% 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. 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). 4.3 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) Commodities 3 Months (%) Weight (%) NN (L) Commodity Enhanced Hedge Funds 3 Months (%) Weight (%) NN (L) Alternative Beta 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 June 017 Yields on Euro government bonds relatively stable on balance in the second quarter of 017 Expectation of monetary policy normalization going forward 5-year EUR swap rates up 10 bps over the quarter Negative return of 0.3% reflection of increase in rates; duration 4.8 years Performance Over the quarter the fund realized a net return of -0.3%. This decrease reflects the increase in Euro swap rates. Over the quarter 5-year EUR swap rate increased from 0.18% to 0.8%. The overall duration of the fund was 4.8 years per end of June. At the end of the quarter, the AUM of the fund amounted to 495 mln. Outlook Global growth is looking more balanced, with a strong feedback loop between income and spending in reaction to the improvement in global profits and confidence. We expect nominal GDP growth (growth including inflation) in developed markets (DM) to increase from.4% in 016 to 3.9% this year. Imbalances no longer form an insurmountable impediment to higher growth equilibrium, and private sector confidence is on an upward trend. Constructive fiscal and monetary policy responses could further support growth. Political and policy risks are in no short supply. These include doubts about the effectiveness of the US administration, monetary policy normalization, European integration, alleged Russian intervention in US and European election campaigns, the conflict in the Middle East, and the unpredictability of the North Korean regime. Still, we should keep in mind these types of risk are around most of the time. 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 10.4 Swaps -0.5 Cash 90.1 Duration contribution (year) Treasuries 0.49 Swaps 4.31 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 June 017 Yields on Euro government bonds relatively stable on balance in the second quarter of 017 Expectation of monetary policy normalization going forward 0-year EUR swap rate up 15 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 1.30% to 1.45%. During the quarter the overall duration of the fund was mainly unchanged at 1.8 years per end of June. At the end of the quarter, the AUM of the fund amounted to 808 mln. Outlook Global growth is looking more balanced, with a strong feedback loop between income and spending in reaction to the improvement in global profits and confidence. We expect nominal GDP growth (growth including inflation) in developed markets (DM) to increase from.4% in 016 to 3.9% this year. Imbalances no longer form an insurmountable impediment to higher growth equilibrium, and private sector confidence is on an upward trend. Constructive fiscal and monetary policy responses could further support growth. Political and policy risks are in no short supply. These include doubts about the effectiveness of the US administration, monetary policy normalization, European integration, alleged Russian intervention in US and European election campaigns, the conflict in the Middle East, and the unpredictability of the North Korean regime. Still, we should keep in mind these types of risk are around most of the time. 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 June 017 Yields on Euro government bonds relatively stable on balance in the second quarter of 017 Expectation of monetary policy normalization going forward 40-year EUR swap rates up 14 bps over the quarter Negative return of 5.3% reflection of increase in rates; duration 40.6 years Performance Over the quarter the fund realized a net return of-5.3%. This decrease reflects the increase in Euro swap rates. Over the quarter the 40-year EUR swap rate increased by 14 basis points to 1.54%. The overall duration of the fund was 40.6 years per end of June. At the end of the quarter, the AUM of the fund amounted to 565 mln. Outlook Global growth is looking more balanced, with a strong feedback loop between income and spending in reaction to the improvement in global profits and confidence. We expect nominal GDP growth (growth including inflation) in developed markets (DM) to increase from.4% in 016 to 3.9% this year. Imbalances no longer form an insurmountable impediment to higher growth equilibrium, and private sector confidence is on an upward trend. Constructive fiscal and monetary policy responses could further support growth. Political and policy risks are in no short supply. These include doubts about the effectiveness of the US administration, monetary policy normalization, European integration, alleged Russian intervention in US and European election campaigns, the conflict in the Middle East, and the unpredictability of the North Korean regime. Still, we should keep in mind these types of risk are around most of the time. 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 49.9 Swaps -3.7 Cash 53.9 Duration contribution (year) Treasuries -0.4 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.