Groupama Asset Management is expanding its range of “unconstrained” fixed-income funds

19/03/2018

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Groupama Asset Management announces the commercialization of G Fund Euro High Yield Bonds. This sub-fund of the "G Fund" open-ended collective investment fund is characterized by an active and unconstrained management approach.

As a new solution enriching our “unconstrained” product range, G Fund Euro High Yield Bonds is mainly invested in corporate high-yield bonds denominated in euros. This fund was developed to provide stable returns under constantly changing market conditions, via a flexible management process and a level of diversification that is considered high.

Indeed, the portfolio team deploys an “active” management style based on an unconstrained bond-picking approach, enabling the team to scan a wider field of investment opportunities and express its long-term convictions. Although the fixed-income investment universe includes all types of subordinated debt, the share of financial bonds can represent 0 to 25% of the portfolio’s exposure, while the share of investment grade BBB and non-rated bonds can vary between 0 and 20%.

 

A team reputed for its experience, with assets under management attaining 1.2 billion euros* in unconstrained strategies.

To meet clearly defined targets, the management team uses various performance drivers, through  a “bottom-up” investment strategy based on three thematic fixed-income pockets – a core portfolio strategy focused on picking issues in the process of debt reduction or recovery, with good 1-year visibility, combined with a carry strategy and a “tactical” strategy. The team also implements a “derivative overlay” management style, which enables the hedging of positions and active management of the portfolio’s beta.

As with all our unconstrained strategies, this bond-picking freedom is tightly linked to risk management, both in terms of diversification and exposure to market beta and specific risks.

The fund is managed by the Groupama AM High Yield management team, consisting of Nicolas Gouju Fund Manager-Analyst, and Gabrielle Capron, Dedicated Analyst, under the authority of Stephan Mazel, Head of Credit Management.

“With the change of course in central bank’s monetary policies, the structural rise in interest rates and the recent return of volatility, a new cycle is clearly visible on the fixed-income markets. These conditions pose major challenges to investors, who must search for alpha while protecting their portfolio, especially against interest rate risk. With the launch of G Fund Euro High Yield Bonds, we wish to expand our range of unconstrained fixed-income funds and thereby continue to propose innovative and distinctive solutions,” affirms Stephan Mazel.

“Other unconstrained solutions are currently being designed and should soon be supplementing our range. We are far from seeing an end to Investors’ interest in this type of approach, as shown   the positive net inflow that our range again recorded in 2017, increasing the total assets under management to significant levels,” observes Thierry Goudin, Head of Business Development.

 

*Assets under management relative to all the “unconstrained” fixed-income investment solutions Groupama AM

Description G Fund Euro High Yield Bonds
Code ISIN LU0571101129 part ID
Classification Eurozone bonds
Legal status Compartment, under Luxembourg law, of the G Fund “SICAV” (open-end collective investment fund).
Benchmark Merrill Lynch Euro High Yield BB-B Rate Constrained Index
Type of investment fund UCITS
Capitalization/ Distribution D
Bloomberg code GEUCRID
Total Net Assets 51.90 Mill. EUR on 28/02/2018
NAV valuation period Daily
Subscriptions / redemptions Every day up to 12:00 h, Luxembourg time

– NAV unknown – Settlement D+3

Maximum management fees (%) Fixed: 0.60%

Variable: None

Entry charge (%) Paid into the UCITS None

Not paid into the UCITS: 4%

Outperformance commission (%) 20%, including tax, of the outperformance net of costs, for performance superior to the Merrill Lynch Euro High Yield BB-B Rated Constrained Index
Redemption charge (%) Paid into the UCITS None

Not paid into the UCITS: None

Transaction commission YES
Custodian bank CACEIS BANK Luxembourg

 

DISCLAIMER

Before investing, each investor must read the prospectus or the key investor information document (KIID) of the UCITS. These documents and other periodical documents can be obtained free of charge on request from Groupama AM or on our website www.groupama-am.fr

This non-contractual document does not, under any circumstances, constitute a recommendation, request for offers, an offer to buy or sell or an arbitrage offer, and may in no case be interpreted as such.

The commercial teams of Groupama Asset Management and its subsidiaries are at your service if you wish a personal financial recommendation.