Groupama Asset Management launches G Fund- Absolute Return Bonds, a new unconstrained fixed-income solution*
After the recent official launch of G Fund - Euro High Yield Bonds and G Fund - Global Breakeven Inflation, Groupama AM is further expanding its range of "unconstrained" funds1. G Fund - Absolute Return Bonds is a multi-class fixed-income absolute return fund. Its aim is to outperform the capitalized EONIA by investing in bonds and money-market instruments and optimizing their distribution to attain the investment target.
After the recent official launch of G Fund – Euro High Yield Bonds and G Fund – Global Breakeven Inflation, Groupama AM is further expanding its range of “unconstrained” funds1.
G Fund – Absolute Return Bonds is a multi-class fixed-income absolute return fund. Its aim is to outperform the capitalized EONIA by investing in bonds and money-market instruments and optimizing their distribution to attain the investment target.
The management team deploys directional or arbitrage strategies, while adhering to the maximum annualized volatility target of 5% on the global fixed-income, credit and foreign exchange markets. The team can initiate both buy and sell positions on this broad panel of instruments.
This unconstrained investment strategy is dynamic, flexible and exploits all the performance drivers of the fixed-income universe through the use of 3 different types of management approach: Directional, Relative Value2 and Insurance managements.
Without a structural directional bias, the fund’s aim is to generate value in every market configuration.
Faithful to its approach to risks, the management team incorporates a global risk budget defined by performance driver and by the activation of stop-loss orders3 on each strategy in the event of unfavorable developments.
“G Fund Absolute Return Bonds meets the needs of investors who are increasingly seeking ‘all-terrain’ solutions that can adapt to a rapidly changing fixed-income environment. The challenge today is to generate returns even during phases of rising interest rates,” say Julien Moutier and Laurent Pommier, co-managers of the fund.
“The demand of our clients for fixed-income absolute return funds is reflected in the inflow of € 500 million in two years for our G Fund Alpha Fixed Income. With the launch of G Fund Absolute Return Bonds, we are capitalizing on the quality of our management teams to propose clients a new piece in the overall investment structure,” adds Thierry Goudin, head of business development.
2 relative value strategies
3 advanced orders to sell, designed to limit loss on an asset
- Description : G Fund Absolute Return Bonds
- Code ISIN : LU1226621792 share class I
- Classification : Unconstrained Fixed Income
- Legal status : Compartment, under Luxembourg law, of the G Fund “SICAV” (open-end collective investment fund).
- Benchmark Capitalized EONIA
- Type of investment fund : UCITS
- Capitalization/ Distribution : C
- Bloomberg code : GFABRIC LX
- Total Net Assets : 51.42 Mill. EUR on 28/03/2018
- NAV valuation period : Daily
- Subscriptions / redemptions : Every day up to 12:00 h, Luxembourg time
– NAV unknown – Settlement D+3
- Maximum management fees (%) : Fixed: 0.80% Variable: None
- Entry charge (%) : Paid into the UCITS None Not paid into the UCITS: 4%
- Outperformance commission (%) : 10%, including tax, of the outperformance, net of costs, for performance superior to the EONIA compounded rate +3%
- Redemption charge (%) Paid into the UCITS: None – Not paid into the UCITS: None
- Transaction commission : Yes
- Custodian bank : CACEIS BANK Luxembourg