The European bank faced challenges with low interest rates negatively impacting returns for its wealth management clients who wanted low-risk investments. NN Investment Partners partnered with the bank to design a fixed-income product investing in high-quality corporate bonds to deliver acceptable returns over 5 years with minimal risk of default. The product launch was successful with over 1.5 billion euros in subscriptions across 5 offerings, providing returns superior to bank deposits.

1. Fixed Income
Partnerships
We build partnerships based on sharing
intelligence, not keeping it to ourselves. Our
partners make our experience and expertise
work for them.

2. Bank delivers optimal risk/return profile for its wealth-
management clients using products developed in
collaboration with NN Investment Partners.
The challenge
Our approach
Value to our partner
Everyone with a savings account has seen the interest they earn on their deposits dwindle to nearly nothing
in the past decade, as a result of the steady decline in interest rates. The low-rate environment was
especially troublesome for one of our partners, a European bank, and for its numerous wealth management
customers, who needed acceptable returns on their deposits but who tolerated only low levels of risk.
We partnered with the bank to design a product that would offer its clients an alternative to savings
accounts and deposits. The resulting low-risk product would deliver acceptable returns on a portfolio of
fixed-income securities over a period of about five years. Recognizing the need for minimal likelihood of
default, we decided to invest in high-quality corporate bonds, almost exclusively with investment grade
ratings, and to actively monitor their credit quality until maturity. To avoid risks related to exchange-rate
movements and currency hedging, the portfolio included only euro-denominated bonds. Once the technical
aspects were in place, we worked with our partner to create marketing materials and to arrange
presentations and roadshows to introduce end-clients to the new concept.
The initial launch was sufficiently successful that subsequent offerings were made in each of the next four
years. Total subscriptions exceeded 1.5 billion euros; all five tranches delivered positive results. The product’s
returns were consistently superior to those of bank deposits. The portfolio’s broad range of companies and
industry sectors ensured a level of diversity that helped ensure an optimal risk/return profile. The programme
clearly met the bank’s needs and those of its clients, as evidenced by the continuing demand and the
success of each offering.

3. About NN Investment Partners
NN Investment Partners is the asset manager
of NN Group N.V., a publicly traded corporation.
NN Investment Partners is head-quartered in
The Hague, The Netherlands.
On April 7, 2015, we officially changed our name
from ING Investment Management to NN Investment
Partners. Our name is new yet we are the same
company we have always been: one with a
successful history of client-focused asset
management extending back to 1845.
NN Investment Partners manages in aggregate
approximately EUR 180 bln* (USD 202 bln*) in assets
for institutions and individual investors worldwide.
Employing over 1.200 staff, we are active in 16
countries across Europe, Middle East, Asia and U.S.
*Figures as of 30 September 2015
For more information on our investment strategies
or our mutual funds, please contact us or visit
www.nnip.com for more information.
We have always felt that lasting partnerships and the best results are built
around making clients’ challenges our challenges. For different organisations,
getting the most out of investments in a responsible way means different things.
At NN Investment Partners, we focus wholly on what this means for you and
provide the solutions that meet your needs.
Netherlands
+31 (0)70 378 1781
Germany
+49 69 50 95 49 0
Belgium
+32 2 504 47 00
France
+33 (0)1 56 79 34 50
Luxembourg
+352 2463 5140
Iberia & Latin America
+34 91 769 41 01
Czech Republic
+31 (0) 70-378 1112
Italy - Austria
+39 02 3031 6400
Nordics
+31 (0)70 378 1781
United Kingdom
+ 44 207 767 1220
Poland
+48 22 640 09 78
Singapore
+65 6632 3060
Romania
+40 21 402 85 50
Switzerland
+41 58 252 55 50
Middle East
+971 4 403 0800
US
+31 (0)70 378 1781
Japan
+81-3-5210-0653
Slovakia
+420 2 510 91 711