BNP AM

The bank for a changing world

Fixed income

Fixed Income Funds offer solutions for multiple investment topics such as hedging and yield enhancement or cost/income ratio management.

Quantitative Easing and lower yields have brought very large inflows into the Fixed Income asset class – while at the same time ever reducing the attractiveness of its returns for the risk taken by investors.

We are strongly committed to continue the expansion of our range in the Fixed income universe, complementing already existing defensive solutions like the High Yield Europe Defensive – aiming to enjoy some of the remuneration of high yield credit without bearing its full risk – or option-based strategies enhancing returns in government bonds.

Fixed Income Diversifier

THEAM Quant – Fixed Income Diversifier gives access to different sources of returns in the interest rates curve with risk control mechanisms, in a fully systematic fashion. The objective of the fund is to increase the value of its assets over the medium term, by being exposed to a global dynamic long/short portfolio of short-term money market rates and long term government bonds. The portfolio is built using a systematic selection of diversified sources of return in the interest rates markets while aiming at (i) keeping the objective of keeping the Sub-fund annual volatility at a target level of 4,5% and (ii) reaching market neutrality of the government bonds exposure.

The fund leverages on the most recent research on factor investing in fixed-income.

The BNP Paribas Quantitative Investment Strategies Lab team (QIS lab) has released a new research paper called carry and momentum in government based on the results of their extensive work on factor investing in fixed-income.

      Investments in the aforementioned strategies are subject to market fluctuation and risks inherent in investing in securities. The value of investments and the revenue they generate can increase or decrease and it is possible that investors will not recover their initial investment. Source: BNP Paribas Asset Management Holding, registered with the Paris Registry of Commerce and Companies under number 682 001 904 as a Limited Company with share capital of 23 041 936 euros. Registered office: 1 Boulevard Haussmann, 75009 Paris. Postal address: TSA 47000/75318 PARIS CEDEX 09