NN Investment Partners (NN IP) has signed a memorandum of understanding (MoU) with China’s leading asset manager, China Asset Management Co., Ltd. (ChinaAMC). The MoU will provide a platform for NN IP and ChinaAMC to explore joint product development opportunities and consequently leverage on each other’s capabilities in European and Chinese capital markets respectively. In particular, the MoU is expected to strengthen NNIP and ChinaAMC’s environmental, social and governance (ESG) offerings to clients.
NN IP has a successful heritage dating back to 1845, with core strengths in active management, generating income and sustainable investments. Responsible investing has been an integral part of its business, as it integrates ESG factors into the investment process. NN IP introduced its first sustainable equity fund in 1999 and was one of the earliest signatories to the United Nations-supported Principles for Responsible Investment (PRI). The PRI Initiative has been instrumental in raising awareness about responsible investment among the global investment community and is seen as the leading international network of investors committed to integrating ESG considerations into their investment process and ownership practices.
Satish Bapat, CEO of NN Investment Partners and Member of the Management Board at NN Group, commented: “ChinaAMC’s in-depth knowledge of the Chinese capital markets and NN IP’s long heritage in sustainable investing is a complementary combination that we believe may create long-term value for investors. We are excited to explore an alliance with ChinaAMC, a top asset management company in China in the area of ESG. We are especially pleased that ChinaAMC is as passionate about responsible investing as NN IP, being the first Chinese asset manager to sign up with the UN PRI.”
ChinaAMC, provides investment management and advisory services to overseas institutional clients globally. It is also the first full service asset manager in China to have joined the PRI. Through a partnership, NN IP will play the pivotal role of an advisor to China AMC and help it develop and adapt international best practices in integrating ESG factors into its investment processes.
Tang Xiaodong, CEO of ChinaAMC, said: “ChinaAMC hopes to bring more sophisticated investment strategies into China through cooperation with globally renowned asset management organisations like NN IP. This will provide domestic investors with better investment products and services. At the same time, ChinaAMC also hopes to increase the international institutions’ understanding of the Chinese capital markets and the Chinese asset management industry, so that these investors will also have more opportunities to participate in China’s economic development.”
The MoU will also lay the foundation for both parties to collaborate on the OBOR (One Belt One Road) opportunities. Satish Bapat adds: “OBOR is a significant initiative which is expected to have significant impact on countries linked to OBOR. We are excited by the investment opportunities generated by OBOR and through mutual collaboration we believe clients of both firms will benefit from NN IP’s core expertise in managing emerging and frontier markets debt and ChinaAMC’s on-the-ground presence in China.”