BNP Paribas Asset Management announces launch of new Money Market Fund : BNP Paribas InstiCash EUR Government CNAV SICAV

BNP Paribas Asset Management is pleased to announce the launch of the BNP Paribas InstiCash EUR Government CNAV SICAV, a AAA-rated ^[1] Money Market fund that offers investors a cash management solution targeting capital preservation.

The fund’s sovereign-backed assets aim to provide structural resilience, making it an attractive option for investors seeking a low-risk solution for their day-to-day cash management.

The BNP Paribas InstiCash EUR Government CNAV SICAV is a public debt constant net asset value money market fund that invests at least 99.5% of its assets in public debt instruments. The fund targets minimal volatility of its NAV, providing both a stable NAV at 1.00 EUR and a variable NAV, combined with high daily and weekly liquidity buffers and amortised cost valuation method. It seeks to achieve a return in EUR in line with prevailing money market rates, over a 1-day period, while aiming to preserve capital and maintain a high degree of diversification. ^[2]

” The launch of the BNP Paribas InstiCash EUR Government CNAV is a significant addition to our €170 bn Liquidity Solutions range. We are excited to offer investors a product that combines active management of rate and credit duration,” said Marc Fleury, Head of Liquidity Solutions at BNP Paribas Asset Management.

“There continues to be investor appetite for high-quality, low-risk solutions for day-to-day cash management. The CNAV fund can potentially provide a safe haven for investors seeking to preserve capital and maintain liquidity,” added Marc Fleury.

Key fund characteristics

Risks associated with an investment in the fund

Investments are subject to market fluctuations and other risks inherent to investing in securities. The value of investments and the income they generate may rise or fall and it is possible that investors may not recover their initial investment.

The sub-fund may be exposed to other risks defined below:

CAPITAL LOSS RISK: The value of the investments in Financial Instrument(s) and the returns generated by the described funds may go down as well as up. Investors may not get back the amount they originally invested.

INTEREST RATE RISK: The value of an investment may be affected by interest rate fluctuations. Interest rates may be influenced by several elements or events, such as monetary policy, the discount rate, inflation, etc.

CREDIT RISK: This is the risk that may derive from the rating downgrade of a bond issuer to which the sub-funds are exposed, which may therefore cause the value of the investments to go down. Sub-funds investing in high-yield bonds present a higher-than-average risk due to the greater fluctuation of their currency or the quality of the issuer.

COUNTERPARTY RISK: This risk relates to the quality or the default of the counterparty with which the Management Company negotiates, in particular involving payment for/delivery of financial instruments and the signing of agreements involving forward financial instruments. This risk is associated with the ability of the counterparty to fulfil its commitments (for example: payment, delivery and reimbursement). This risk also relates to efficient portfolio management techniques and instruments. If counterparty does not live up to its contractual obligations, it may affect investor returns.

MMFs ARE NOT GUARANTEED INVESTMENTS. An investment in MMFs is different from an investment in deposits, there is a risk that the principal invested in an MMF is capable of fluctuation. The MMF does not rely on external support for guaranteeing the liquidity of the MMF or stabilising the NAV per unit or share. The risk of loss of the principal is to be borne by the investor.

Footnotes

1. ^[1] Fitch Ratings ↑
2. ^[2] All guidelines are fully outlined in the Fund Prospectus. ↑