Fund Management

What's New In Investments, Funds? - Oddo BHF Asset Management, M&G

Editorial Staff, 26 July 2019


The latest funds and investment activity across Europe.

Oddo BHF Asset Management
European investment firm Oddo BHF Asset Management is expanding ESG criteria in its Oddo BHF European convertible bond fund. The firm has applied ESG screening to European equity portfolios and credit funds since 2010, and is following through on enhancing ESG coverage to improve portfolio performance over the longer term, it said.

"The trend towards the integration of ESG criteria into asset management is irreversible and highly significant for many of our clients," Nicolas Jacob, head of ESG research at Oddo BHF AM, said.

As of 30 June 2019, the French group managed assets of €6.9 billion (£6.2 billion), with ESG standards applied in 12 per cent of total AuM.

“It is no coincidence that the latest defaults seen in the convertible bonds market, Folli-Follie or Nyrstar for example -- businesses in which we were not invested -- concerned companies with significant governance issues”, said Olivier Becker, head of convertible bonds and target date funds for the group. "By integrating demanding ESG factors into our investment process, we intend to improve the fund's risk-return profile. This could lead to even more robust investment results in the future."

M&G Investments
M&G Investments has launched the M&G (Lux) Emerging Markets Corporate ESG Bond Fund a Luxembourg-domiciled SICAV investing in the emerging market corporates bonds, with a focus on environmental, social and governance characteristics.

The fund will be managed by Charles de Quinsonas and supported by head of emerging market debt Claudia Calich.

The investment strategy takes an active, high-conviction approach based on an in-depth analysis of corporate bonds, as well as an evaluation of the risks associated with the respective countries. The fund aims to provide a combination of capital growth and income to deliver a return that is higher than that of the global corporate emerging markets bond over any three-year period. The JPM CEMBI Broad Diversified Index is a point of reference against which the fund’s performance may be measured, M&G said.

At least 80 per cent of the fund is invested in debt securities issued by companies, including those backed or owned by governments, in emerging markets. The fund will predominantly invest in dollar-denominated bonds but offers hedged share classes for investors who want to hedge the dollar risk.

Union Bancaire Privée, the Geneva-based private bank, has added a new investment solution to its equity product range. It has launched UBAM - Multifunds Secular Trends.

This long-only strategy will invest in a concentrated portfolio of 10 to 20 high-conviction thematic equity UCITS funds, with exposure to four trends that are reshaping society and the global economy: climate change, demographics, consumption patterns and disruptive innovation. The fund is based on the conviction that these trends will continue to create favourable conditions for leading companies that are able to develop and adapt, and it will provide an innovative investment opportunity for active investors.

UBAM - Multifunds Secular Trends will be managed by UBP’s multi-management & fund research team.


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