BNP AM

The bank for a changing world

Multi asset

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

The Multi Asset Diversified 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%.

It has a systematic approach based on two investment principles: trend following and risk diversification.

This strategy is also available in Defensive.

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%.

LFIS Selection

The LFIS Selection fund aims to increase the value of its assets over the medium term, through the use of quantitative investment strategies across different asset classes. The Sub-fund is taking into account recommendations from an Investment Adviser, with the objective to identify sources of return coming from market opportunities or inefficiencies and combine them within a balanced portfolio.

Cross Asset High Focus

The Cross Asset High Focus fund aims to increase the value of its assets over the medium term, through the use of quantitative investment strategies across different asset classes. The systematic allocation between quantitative strategies aims for a portfolio with a defensive profile over the long term compared to traditional assets with similar volatility (such as broad equity indices).

The fund consists of a liquid, high-focus portfolio, characterized by a defensive nature exhibiting positive carry on average, which aims to deliver high absolute returns, and provide the required diversification benefit to carry on through different/varying economic cycles and market regimes.

Key Points

  1. The portfolio consists of 6 systematic strategies, diversified across core asset classes (equities, FX, commodities, rates) and factors (relative value, carry, momentum), that are rebalanced monthly
  2. Low correlation between the High Focus components is expected to favour a defensive behaviour and a lower probability of extreme losses

The increase of correlations between portfolio components may not be excluded, which may undermine the diversification benefits

      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