Our Strategy

Our Strategy

Our current strategy is to focus mainly on high-rated assets eligible for repo financing with relevant central banks (ECB, US Fed, Bank of England) and to finance the purchase of such assets via repo contracts and/or through our AAA-rated issuing programme vehicle (NJR Finance BV) with banks and institutional investors, targeting an overall portfolio size of circa €1 billion (with single positions ranging from €1 million to €40 million). The post-crisis overall market spread widening raised many opportunities, as it became possible to buy very high quality, credit stable and seasoned ABS at attractive yields. This arbitrage enables NJR to remain focused on high-rated assets while maintaining a very low level of leverage.

Key Figures

Total assets€ 1,225 mn
Equity€ 487 mn
Profit (before tax) 2015€ 12mn
Profit (before tax) 2016€ 12.1 mn

Portfolio Composition

RMBS Prime Europe (66.4%)66.4%
Auto Loans and Leases (13.7%)13.7%
CLOs (7.5%)7.5%
Consumer Loans (7.3%)7.3%
Other Fixed Income (2.8%)2.8%
Funds/OPCVMs (1.1%)1.1%
RMBS Non Conforming Europe (0.8%)0.8%
Trade Receivables (0.4%)0.4%

Geographic Composition

Italy (Baa2/BBB-/BBB+) (19.8%)19.8%
Spain (Baa2/BBB+/BBB+) (15.8%)15.8%
Netherlands (Aaa/AA+/AAA) (14.2%)14.2%
UK (Aa1/AA/AA) (12.9%)12.9%
France (Aa1/AA/AA) (12.6%)12.6%
Germany (Aaa/AAA/AAA) (12%)12%
Portugal (Ba1/BB+/BB+) (4.1%)4.1%
Belgium (Aa3/AA/AA-) (2.6%)2.6%
Ireland (Baa1/A+/A-) (2.5%)2.5%
Finland (Aa1/AA+/AA+) (1.4%)1.4%
Switzerland (Aaa/AAA/AAA) (1.1%)1.1%
USA (Aaa/AA+/AAA) (1%)1%
Norway (Aaa/AAA/AAA) (0.2%)0.2%

Link to Portfolio

Sources of Financing

Sources of Financing

Repos constitute competitive short/medium term sources of financing which ensure a profitable arbitrage while mitigating liquidity and refinancing risks, as it finances high quality assets that are eligible for refinancing at central banks. NJR Invest also established a €435mn financing programme vehicle (NJR Finance BV) which received a AAA-rating (by S&P) on its first issued bonds (€10mn). In this regard, a series of eligibility criteria and portfolio constraints have already been put in place in maintain such rating on current and potential future issuance.

Our objectives

Investing/entering into eligible investments with a view to holding them to maturity
Arranging for the financing of the eligible investments via repo arrangements and/or issuance of AAA-rated CP, MTNs and/or bonds
Entering into hedging agreements in order to manage interest rate and currency risks associated with the investment portfolio and its financing
Managing credit and liquidity risks associated with the asset portfolio and related hedging agreements

Our Team

Our Team - Description

NJR and IRR staff currently consists of 3 people, NJR CEO, formerly CFO and senior portfolio manager with 15 years experience in capital markets (fixed income, funds, derivatives and private equity), IRR CEO with 30 years experience in banking and capital markets (fixed income, equity, funds, derivatives and private equity) and the Middle & Back Office Manager (over 15 years experience in Back-Office management).
NJR and IRR board is composed of 8 members, 4 from Bred (including the President and the deputy CEO), 1 independent member (Sign Director of Sustainable Development department by Electrabel France), NJR’s CEO and IRR's CEO and NJR former managing partner. All investment/funding/hedging decisions require co-signature of 2 board-members.

Our Team

Bruno de WalqueCEO NJR Invest SA
Alain SantmartyCEO IRR Invest SA
Marie GodetMiddle - Back Office Manager

Shareholders

Shareholders

NJR's share capital is composed of €389 million ordinary shares held by Bred Banque Populaire Group (“Bred”, rated A2/A/A), €1 million founder's shares and over €10 million retained earnings. NJR is a direct subsidiary of Bred and is fully consolidated on Bred’s balance sheet. Bred is the largest French regional bank, member of the Banques Populaires Group, operating in the Paris region, Normandy and in the French territories outside Europe. Bred has a very strong customer base, posted a €238 mn consolidated net profit in 2015 and has a remarkable 14.3% Tier 1 ratio.

BRED - Key Figures 2015

Total assets€ 54.7 bn
Equity€ 3.2 bn
Consolidated net profit€238 mn
Customer deposits€15.9 bn
Tier 1 ratio14.3 %

Management Report

Management Report

NJR reported a gross profit of €12.1mn in 2016. The portfolio size is currently €1,065 bln, mainly invested in European senior ABS, eligible for repo financing at the ECB. The bulk of NJR portfolio is invested in seasoned RMBS across Europe. Based upon a very prudent and selective credit strategy, NJR has built a conservative, high-quality and granular portfolio over the years which outperformed the market both in terms of underlying credit performance and spread evolution. Since 2008, market conditions allowed NJR to purchase high-quality assets at very attractive levels. The credit performance of the portfolio remains extremely solid despite the gloomy economic environment thanks to NJR's conservative and tight investment strategy.

Financial Statements 2015

IRR

IRR

IRR SA is a subsidiary of NJR SA who in turn is a subsidiary of BRED Banque Populaire (BRED). Its purpose is to invest in private-equity and/or real estate transactions. The capital of IRR amounts to 20.588.550 € and IRR is fully consolidated on BRED’s balance sheet. Most of IRR assets consists of financial commitments in Aurora Capital SCA; Aurora Capital's built a large portfolio of commercial real estate in France with attractive rental yields and satisfied risk conditions. Since 2014, IRR has diversified its portfolio with investments in US charter schools, in a dedicated real estate fund in the Baltic countries (mainly offices). It also has investment commitments in a real estate fund sponsored by the LVMH Group aiming to develop mixed-use luxury commercial spaces as well as a mezzanine debt fund with assets in German commercial real estate, a fund investing in European Retail parks and a worldwide commercial real estate fund of funds. IRR's total investments and commitments currently account for €150MM.

EPBF

EPBF

EBPF is incorporated as a Payment Institution in Belgium since 2011 in order to offer European corporate and institutional clients the possibility to fully benefit from the uniformed European payments market (Single European Payments Area - SEPA). As a financial institution EPBF is operating under the supervision of the National Bank of Belgium. EPBF is a subsidiary of NJR SA who in turn is a subsidiary of BRED Banque Populaire (BRED). The capital of EPBF amounts to 7.000.000 € and EPBF is fully consolidated on BRED’s balance sheet. Our goal is to maximize customer satisfaction by offering secure, efficient and customer oriented payment and cash management solutions to European based corporate and institutional clients. Therefore we are specialized in the processing of high volume flows, more specific SEPA Credit Transfers and SEPA Direct Debits. In order to further optimize the treasury we offer cash management solutions like cash pooling structures. EPBF also proposes Isabel, SWIFT or an EBICS connection in order to guarantee a secure transmission of payment and reporting files. All our solutions are tailor made and used by European corporate and institutional clients active in various sectors (energy, telecom, retail, …). In 2015 EPBF treated 147 million SEPA transactions for a total value of 31 billion €. Our offices are located at Terhulpsesteenweg 181, 1170 Brussels.