NN goes Dutch with an EM loans fund

NN Investment Partners, which was formerly ING Investment Management, and the Dutch development bank FMO, have jointly launched an emerging markets loans fund for institutional investors. The fund will help investors access emerging market corporate loans, with an emphasis on impact investing and reducing the use of carbon.

FMO chief executive officer, Nanno Kleiterp, said: “As a pioneer in emerging market debt with an excellent track record, NN IP is a natural partner for FMO to work with on this fund. The partnership will help us multiply our impact by mobilising investors and enabling them to follow in our steps.” The fund will mirror loans made by FMO, so investors can invest alongside it to benefit from its underwriting capabilities and emerging markets track record. Kleiterp said that as ESG criteria are fully integrated in FMO’s credit process, investors will have a positive impact in terms of sustainability and governance. NN IP chief investment officer, Hans Stoter, commented: “Emerging market loans provide good diversification within an EMD portfolio, while at the same time offering an attractive market risk premium. It complements NN IP’s broad EMD strategy range and extends the range of the illiquid fixed income products we have to offer to institutional investors.”