BNP Paribas Asset Management (‘BNPP AM’) announces the launch of Parvest QIS Multi-factor Credit Euro IG, a new smart beta strategy that invests in euro-denominated investment grade corporate bonds. The launch marks the expansion of BNPP AM’s range of smart beta strategies into fixed income, giving investors the ability to diversify their bond investments through a multi-factor quantitative approach.
The Parvest QIS Multi-factor Credit Euro IG fund was launched in January as part of the smart beta fund range managed by the Quantitative management team within BNPP AM’s Multi-Asset Quantitative Solutions (MAQS) division, and is now available to investors in the UK. Following the launch of factor strategies investing in equities (in 2008) and government bonds and currencies (in 2009), the new fund applies this multi-factor approach to corporate bonds. The fund is currently valued at EUR 108 million1
Portfolio holdings are selected using a multi-factor approach that systematically analyses fundamental indicators and market data to identify those bonds within the investment universe that offer the best prospects for risk-adjusted returns. The fund managers aim to outperform their benchmark at an equivalent level of risk.
Olivier Laplénie, Head of Quantitative Fixed Income at BNP Paribas Asset Management
The multi-factor approach used to manage Parvest QIS Multi-factor Credit Euro IG is the fruit of many years of research into drivers of bond market performance. By combining our bond market expertise with that of our quantitative research teams, we have been able to identify various indicators from both the equity and credit markets and company balance sheets that are the main drivers of corporate bond returns.
Charles Cresteil, Quantitative Investment Specialist at BNP Paribas Asset Management
Parvest QIS Multi-factor Credit Euro IG is an innovative solution for investors seeking to diversify their exposure to investment grade corporate bonds. With an investment universe of several thousand issues, we believe that a multi-factor approach is an especially effective way to select bonds. By combining fundamental criteria analysing issuer quality and risk with valuations and trend-following indicators, the strategy offers a diversified selection of bonds, implemented via a systematic approach offering transparency and risk control.
- 1. Source: BNP Paribas Asset Management as at 9/4/18
Investments in the fund are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the funds described being at risk of capital loss. For a Complete description and definition of risks, please consult the last available prospectus and KIID of the funds. Investors considering subscribing to a fund should read carefully its most recent prospectus and KIID that can be downloaded free of charge from our site bnpparibas-am.com. About BNP Paribas Asset Management BNP Paribas Asset Management is the investment management arm of BNP Paribas, one of the world’s major financial institutions. Managing and advising EUR 569 billion in assets as at 31 December 2017, BNP Paribas Asset Management offers a comprehensive range of active, passive and quantitative investment solutions covering a broad spectrum of asset classes and regions. With more than 700 investment professionals and around 600 client servicing specialists, BNP Paribas Asset Management serves individual, corporate and institutional investors in 70 countries around the world. Since 2002, BNP Paribas Asset Management has been a major player in sustainable and responsible investing. Additional information BNP Paribas Asset Management UK Limited, ‘the investment company’, is authorised and regulated by the Financial Conduct Authority. Registered in England No: 02474627, registered office: 5 Aldermanbury Square, London, England, EC2V 7BP, United Kingdom. This material is produced for information purposes only 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 material is issued and has been prepared by the investment management company. 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 does not constitute investment advice or form part of an offer or invitation to subscribe for or to purchase any financial instrument(s) nor shall it or any part of it form the basis of any contract or commitment whatsoever. This document is provided without knowledge of an investors’ situation. Prior to any subscription, investors should verify in which countries the financial instruments referred to in this document refers are registered and authorised for public sale. In particular financial instruments cannot be offered or sold publicly in the United States. Investors considering subscriptions should read carefully the most recent prospectus and Key Investor Information Document (KIID) agreed by the regulatory authority, available on the website. Investors are invited to consult the most recent financial reports, which are also available on the website. Investors should consult their own legal and tax advisors prior to investing. Given the economic and market risks, there can be no assurance that the financial instrument(s) will achieve its investment objectives. Their value can decrease as well as increase. In particular, changes in currency exchange rates may affect the value of an investment. Performance is shown net of management fees and is calculated using global returns with time factored in, with net dividends and reinvested interest, and does not include subscription-redemption fees, exchange rate fees or tax. Past performance is not a guarantee of future results. This document is directed only at person(s) who have professional experience in matters relating to investments (‘relevant persons’). Any investment or investment activity to which this document relates is available only to and will be engaged in only with Professional Clients as defined in the rules of the Financial Conduct Authority. Any person who is not a relevant person should not act or rely on this document or any of its contents.