Buy and maintain credit
Buy and maintain credit is our core flagship fixed income strategy, with integrated ESG factor analysis, helping our clients access the investment-grade credit markets.
The opportunity
Our buy and maintain credit strategy provides a solution to the risk of bond market illiquidity. We offer diversified, flexible portfolios focused on long-term outcomes, with smart portfolio construction helping to mitigate downside risk over the long term.
In our view, it is a smart alternative to passive investing for core portfolios, designed to avoid the pitfalls of market-weighted index tracking. We aim to capture the returns from the credit market – with a similar credit rating and duration profile – with less downside risk.
Our buy and maintain portfolios are built on quality. Credit selection is bottom-up, driven by recommendations from our global team of fundamental credit analysts. We maintain a strong focus on long-term financial, business and ESG risks, both at investment and on an ongoing basis.
Our expertise
Cost-efficient
An active approach means we are able to make smart decisions on selling in times of market stress, resulting fewer trades and lower trading costs. When we do trade, we can draw on our deep credit investing capabilities and innovative trading techniques to help minimise transaction costs.
Collaborative
We can create customised long-term credit portfolios that match your specific needs. This could include elements such as your investment principles, risk budgets or regulatory frameworks. Our pooled options enables us to offer flexible, cost-effective access to fully ESG-integrated credit strategies in sterling, euro and global credit.
Transparent
Portfolios are based on clear portfolio parameters, with regular reporting structures built-in. We provide clear and concise information including timely and clear holistic views on all relevant measures of success to empower your decision-making.
Sustainability
Responsible investment has always been about the long term. Fixed income investors need to be sure that a business has a resilient strategy for the life of a security, which could be 20 years or beyond.
We believe that integrating environmental, social and governance (ESG) analysis into our credit strategies could lead to more effective investment solutions that create sustainable value for our clients, while potentially helping to address global challenges.
We believe that integrating environmental, social and governance (ESG) analysis into our credit strategies could lead to more effective investment solutions that create sustainable value for our clients, while potentially helping to address global challenges.
This includes:
- Proprietary ESG methodologies
- ESG analysis embedded into our deep fundamental credit research
- Qualitative analysis framework for Green, Social and Sustainable (GSS) Bonds
- Integrating ESG performance indicators into investment portfolio decision-making tools
- Strong governance and ESG risk monitoring
- Transparency through reporting on ESG and engagement
Investment risks
Risk considerations for this strategy include:
- Market risk and risk of loss of invested capital
- Risks associated with fixed income securities, including, but not limited to, interest rate risk, credit risk and liquidity risks
- Risks linked to global investments
Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested.
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Important information
BNP PARIBAS ASSET MANAGEMENT Singapore Limited, “the investment management company”, is a company incorporated in Singapore with its registered office at 20 Collyer Quay, #01-01 Collyer Quay, Singapore 049319, Company Registration No. 199308471D.
This material is issued and has been prepared by the investment management company. This advertisement has not been reviewed by the Monetary Authority of Singapore. It contains opinions and statistical data that are considered lawful and correct on the day of their publication according to the economic and financial environment at the time.
This document is produced for information purposes and does not constitute:
- an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or;
- investment advice.
This document does not have any regard to the specific investment objectives, financial situation or particular needs of any person. Investors should consult their own professional advisors in respect of legal, accounting, domicile and tax advice prior to investing in the fund in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Investors considering subscribing for the fund should read carefully the most recent prospectus, offering document or other information material and consult the fund’s most recent financial reports before investing, as available from the investment management company or its authorized distributors. Given the economic and market risks, there can be no assurance that the fund will achieve its investment objectives. Investments in the fund are not deposits or other obligations of, or guaranteed, or insured by the investment management company or its authorized distributors or their affiliates and are subject to investment risks, including the possible loss of principal amount invested. Returns may be affected by, amongst other things, investment strategies or objectives of the fund and material market and economic conditions, including interest rates, market terms and general market conditions. Past performance of the fund or the managers, and any economic and market trends or forecast, are not necessarily indicative of the future or likely performance of the fund or the manager. The value of shares in the fund, and the income accruing to the shares (if any), may fall as well as rise and investors may not get back the full amount invested. Funds which are invested in emerging markets, smaller companies and derivative instruments may also involve a higher degree of risk and are usually more sensitive to price movements.
Views and opinions included in this document constitute the judgment of the investment management company and its affiliates at the time specified and may be subject to change without notice.
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