NN Investment Partners (NN IP) has made some changes to the way it manages its emerging markets (EM) equity funds after trimming its Singapore-based EM equities desk.
The company’s spokesperson told Citywire Asia that some of its EM equity funds will transition into a Sustainable EM index fund, while the management of certain EM equity funds will be delegated to Nomura Asset Management.
Based on client interest and demand, the NN Global Emerging Markets fund and NN (L) Emerging Markets Equity Opportunities fund, for example, will be repositioned into a Global Emerging Market Sustainable Enhanced index solution (Sustainable EM index fund).
Citywire A-rated Ashish Goyal manages both the NN Global Emerging Markets fund and NN (L) Emerging Markets Equity Opportunities fund.
The NN Global Emerging Markets fund returned 8.5% over the past year ended 31 July.
Additionally, NN IP expects to merge its NN Far East fund into the enlarged Sustainable EM index fund. NN Far East fund, which is co-managed by Jelmer Krijthe and Citywire + Tjeerd van Cappelle, returned 6.5% over the past one year ended 31 July.
The NN Far East fund invests in companies domiciled in the Asia Pacific, including Japan, Australia, Hong Kong, China, Taiwan and South Korea.
These plans, which are subject to necessary approvals, will be done in cooperation with partner Irish Life Investment Managers (ILIM).
The spokesperson said the Sustainable EM index fund will profit from NN IP’s strength and heritage in sustainability and ESG investing and the passive execution capabilities of its existing partner ILIM.
The changes follow NN IP's boards' exercise to apply greater focus to its core capabilities and reposition certain strategies to better meet its clients’ needs.
The spokesperson said NN IP is not winding down its EM equities activities, but merely change the way it manages them.
NN IP has recently trimmed its four-member EM equities team in Singapore to two. Goyal and Kannan Venkataramani are the remaining members in the team.