BNP Paribas Investment Partners Launches Multi-Asset EM Income UCITS Fund

Sep 26 2016 | 5:49pm ET

BNP Paribas Investment Partners (BNPIP) has launched its first multi-asset income fund that focuses on emerging markets.

The new vehicle, named Parvest Multi-Asset Income Emerging Fund, was formed in late April. It is a sub-fund of the company’s Parvest UCITS V SICAV, an open-ended investment company incorporated under Luxembourg law. 

The fund has been launched in response to demand from clients who are looking for alternative sources of income and wish to increase their emerging market exposure in line with the growing share of global economic output attributed to emerging markets, the company said in a statement.

The fund is managed using the team’s top-down, macro-based fundamental active asset allocation process, combined with bottom-up active security selection at the asset class level. It aims to target stable and regular income by dynamically allocating across emerging market asset classes and regions, BNPIP said, while exposure will be to the main emerging market asset classes of equities, local sovereign debt, external sovereign debt, corporate debt, currencies and commodities.  

Weightings to equities and fixed income can vary significantly, with both ranging between 0% and 80% of the overall portfolio, BNPIP added. 

The Multi-Asset Solutions team, which runs the new fund, managed more than €70 billion as of June 30, 2016. 

“In the current environment of sustained low interest rates and negative government bond yields, income is an increasingly scarce commodity and emerging markets can offer attractive higher-yielding investment opportunities,” said Colin Graham, CIO of Multi Asset Solutions at BNP Paribas Investment Partners.

“Market dispersion has risen of late, meaning that not all emerging markets are equal," he added. "By combining our established multi-asset income capabilities with first-hand knowledge and understanding of emerging markets, we are able to identify what we consider to be the most attractive income opportunities from across these asset classes in order to meet the needs of our clients.”

BNP Paribas Investment Partners is the BNP Paribas Group’s asset management specialist. It had €532 billion in assets under management and advisory as of the end of June 2016. 

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