Dutch asset manager NN Investment Partners (NN IP) and China Asset Management (ChinaAMC) will together launch fund products that integrate environmental, social and corporate governance (ESG) factors into the investment process.
The two asset management firms have signed a memorandum of understanding that will allow them to collaborate and leverage each other’s expertise.
Satish Bapat, chief executive of NN IP said in a statement that the agreement will bring together ChinaAMC’s knowledge of the capital markets in China with the Dutch firm’s expertise in sustainable investing. He added that he believes the partnership would create long-term value for clients of both firms.
Apart from sustainable investing, the agreement will serve as a foundation for exploring the opportunities related to China’s Belt and Road Initiative (BRI).
The BRI aims to expand maritime routes and land infrastructure networks to connect China, Asia, Africa, and Europe, to boost trade and economic growth.
Bapat said that he expected the clients of both firms to have better access to investments in BRI-related emerging and frontier markets debt supported by ChinaAMC’s on-the-ground presence in China.
Tang Xiaodong, chief executive of Beijing-headquartered ChinaAMC, said in the same statement that the agreement aims to bring more sophisticated investment strategies into China through a cooperation with a global asset manager.
Moreover, Sino-foreign cooperation is expected to increase the understanding of China’s asset management industry and capital markets among international institutions.
NN IP, headquartered in the Hague, is the asset management arm of NN Group. The Dutch firm managed assets of approximately €246bn globally at the end of 2017.
The privately-held ChinaAMC is one of China’s largest asset management firms. Its assets under management were reported to be $173bn (€140.6bn) in the early 2017.
ChinaAMC was the first full-service asset manager in China to join the UN Principles for Responsible Investment in March 2017.
