France’s Oddo AM launches high yield fund

Oddo Asset Management is launching a target-dated fund investing in corporate and convertible bonds and able to take advantage of high-yield opportunities in the bond markets for the period through to 2017.

The fund, called Oddo Haut Rendement 2017, builds on the experience running previous target-dated fixed income funds. The firm now runs more than €1bn in this type of strategy.

Oddo Rendement 2017 attracted €548m during its distribution period (September 2011 to end March 2012) and has already delivered 11% as at 4 May 2012. The new fund is managed by the same team running the earlier fund: Xavier Hoche, Muriel Blanchier and Anne-Claire Daussun. They have been recently joined by analyst Laure Desbrosses.

Oddo Haut Rendement 2017 aims to offer a high yield by selecting stocks with a maturity that does not extend more than six months beyond 31 December 2017.

The key features are:

– a gross annual return at maturity of 7.52% (as at 2 May 2012), if no default

– an investment universe that favours stocks thought to have the highest potential among high-yield bonds, i.e. with a rating below BBB- or unrated

– a discretionary management style based on the thorough analysis of each stock

– an active approach to portfolio management in order to keep credit risk under control

– A diversified portfolio targeting a composition of approximately 70 to 90 holdings, offering a spread across different sectors (all business sectors may be represented) and regions (with the possibility of investing up to 50% of assets outside of Europe)

Co-fund manager Xavier Hoche said the new fund meets the demand from retail and institutional investors in France and abroad seeking “straightforward and diversified fixed-term products”.

The fund’s subscription period ends on 30 November 2012.

Performance since inception for the target-dated funds previously launched by Oddo AM is:

Oddo Convertibles 2011

+23%

Oddo Rendement 2013

+33%

Oddo Rendement 2014

+29%

Oddo Rendement 2015

+12%

Oddo Rendement 2017

+11%

 

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