Theam quant funds
The benefits of investing across several asset classes are both intuitive and proven. Thus, systematic approaches such as our Multi Asset solutions offer very powerful tools in this field.
They can have a natural advantage on a wide-ranging investment universe by embedding mechanisms of control, calibrating and reducing risks, and as a result, efficiently targeting and delivering a given risk-to-return profile through different market conditions.
In addition, focusing on particular themes across assets usually improve the risk-return profiles : this is what we aim to provide by, for example, identifying trends across assets, building complementary risk premia portfolio, regrouping income-orientated strategies from various underlyings, or exploiting many volatility opportunities in a single investment.
Multi Asset Diversified
To better address new market conditions, like very low rates or restless equity markets, the Multi Asset Diversified fund benefits from a high flexibility in its asset allocation: unconstrained exposures and short positions are allowed. It has a dynamic allocation, which is entirely reviewed each day, aiming to react to changing market conditions. The fund aims to increase the value of its assets over the medium term, by being exposed to a diversified long/short basket, the components of which are chosen using a systematic selection method based on different asset classes (equities, fixed income, commodities and real estate). The exposure to the dynamic basket will however be adapted in order to keep the fund annual volatility at a target level of 10%.
A systematic approach based on two investment principles, which execution has been consistently improved since the Fund launch in 2008:
- At the underlying level: Trend Following is used to determine positions and market timing.
- At the portfolio level: asset allocation integrates individual asset views while privileging a robust risk diversification.
Multi Asset Diversified Defensive
For investors willing to invest in a multi-asset diversified strategy, but requiring a more defensive approach, we created the Multi Asset Diversified Defensive fund.
It uses the same framework as the Multi Asset Diversified funds and aimes to increase the value of its assets over the medium term, by being exposed to a diversified portfolio, the components of which are chosen using a systematic selection method based on different asset classes (equities, fixed income, commodities and real estate). The exposure to the portfolio will however be adapted in order to keep the fund annual volatility at a target level of 5%.
Multi Asset Artificial Intelligence
Building on the 10-year track record behind the Multi Asset Diversified strategy, the latest member of the suite uses an Artificial Intelligence algorithm (neural networks) for allocating dynamically between a number of strategies with trend following and mean-reversion characteristics, across asset classes.
Its objective is to increase the value of its assets over the medium term, by being exposed to a diversified long/short portfolio across different asset classes (equities, fixed income and commodities), allocation of which is determined using a systematic method based on artificial intelligence. The exposure to the portfolio is adapted in order to keep the fund annual volatility at a target level of 8%.
Learn more here.
Volatility World Absolute
The Volatility World Absolute Fund’s main objective is to increase the value of its assets over the medium term, through the use of strategies linked to the market’s volatility.
It allows investors to benefit from a diversified portfolio of diversified volatility Risk Premia Systematic strategies.
The Absolute Alpha Fund’s main objective is to increase the value of its assets over the medium term, through the use of quantitative investment strategies across different asset classes.
It allows investors to benefit from a diversified portfolio of Risk Premia systematic strategies with a strategy that aims to capture a substantial portion of the alpha of active managers in a liquid and transparent framework.
There is no easy solution for an investor seeking a stable 4-5% income, traditional assets are not a perfect fit for this target. Government Bonds with low rates don’t generate enough yield in current markets and Equities are seen by many as expensive and volatile for investors seeking income.
The Global Income Fund uses BNP Paribas Global Markets expertise to enhance the income/risk profile of various asset classes and to test the possible portfolios to optimise the allocation.
Its objective is to provide income and capital growth by (i) being exposed to quantitative investment strategies across different asset classes and geographical zones and (ii) by implementing systematic options strategies which aim at reducing risk. The fund targets an income of 4% per year, the achievement of this target is not guaranteed.
- A broadly diversified investment universe covering most of geographies and asset classes, income assets are selected and enhanced in order to aim at ensuring the best portfolio yield for a given level of risk.
- A systematic and dynamic allocation aiming at maximising the portfolio’s yield while having a limited risk (target 6% volatility) and benefitting from a daily rebalancing to aim at achieving a diversified and consistent income.
- A long biased allocation with a controlled leverage with individual caps according to risks and liquidity of each underlying.
Multi Asset Diversified Protected
The Multi Asset Diversified Protected fund seeks to increase the value of its assets over the medium term by being exposed to a diversified long/short basket, the components of which are chosen using a systematic selection method based on different asset classes (equities, fixed income, commodities and real estate). The exposure to the dynamic basket will be adapted in order to keep the annual volatility at a target level of 10%. In addition, the Fund benefits from a protection mechanism from BNP Paribas, whereby any investment made in the Fund benefits from an 80% capital protection of the maximum NAV over the previous sliding year.
- Diversified investment universe covering several asset classes to multiply investment opportunities
- Dynamic allocation, entirely reviewed each month, to ensure reactivity to changing market conditions
- An investor friendly framework: UCITS and with daily liquidity
- Partially protected investment with an 80% protection over 1 sliding year
For more details, please check the product page which is accessible through the table at the botom of this page.
The Hedge Fund Journal’s article: “BNP Paribas’s THEAM Quant Funds Range” The Hedge Fund Journal has published in its August
|Funds||Investment theme||Asset Class||Style|
|THEAM Quant - Multi Asset Diversified Protected||Alternatives / Defensive Strategies||Multi-Asset||Protected|
|THEAM Quant - Global Income||Income||Multi-Asset||Income|
|THEAM Quant - Absolute Alpha||Liquid Alternatives||Multi-Asset||Absolute Return|
|THEAM Quant - Multi Asset Diversified Defensive||Liquid Alternatives||Multi-Asset||Flexible Multi-Asset|
|THEAM Quant - Multi Asset Artificial Intelligence||Liquid Alternatives||Multi-Asset||Managed Futures|
|THEAM Quant - Volatility World Absolute||Liquid Alternatives||Multi-Asset||Volatility Arbitrage|
|THEAM Quant - Multi Asset Diversified||Liquid Alternatives / Defensive Strategies||Multi-Asset||Managed Futures|
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