Oddo AM extends range of target maturity bond funds

Paris-based Oddo Asset Management is extending its range of target maturity funds with a new structure principally invested in international high-yield bonds, Oddo Haut Rendement Monde 2018.

The fund, structured as a French FCP, invests in debt securities (bonds and convertible bonds) whose issuers are located primarily in Europe, but with up to 50% outside Europe, notably in emerging countries and Asia.

It has an investment universe that favours bonds considered to have the highest potential in the high-yield segment (with a rating below BBB- or unrated) and a discretionary management style based on in-depth analysis of each bond.

There is an active approach and a monitoring of specific risks in order to keep portfolio management credit risk under control. Risk diversification within the principal portfolio is based on the dispersion of bond positions.

The fund also has a re-investment / leverage of up to 50% of the portfolio’s net asset value in Investment-Grade European Sovereign bonds, giving a total exposure to the credit and fixed-income markets of up to 150% of net asset value. This leverage will be financed by lending securities or borrowing cash.

A statement from the firm, the investment management subsidiary of banking group Oddo & Cie, said the launch reflects Oddo AM’s ambition to develop fixed-income expertise in emerging countries by drawing on its experience since 2008 as a pioneer in the management of target maturity bond funds. It has recorded inflows of over €1.4bn into target-date bond funds to date.

The target maturity range is managed by a team of seven comprising: Xavier Hoche, lead portfolio manager, Anne-Claire Daussun, credit analyst/portfolio manager,Muriel Blanchier, senior portfolio manager, Laure Desbrosses, credit analyst, Laurent Denize, senior portfolio manager, Olivier Becker, credit analyst and Cyrielle Boyer, portfolio manager.

The new fund is authorized for sales in France and Italy (B Share only). Its authorization for sales is in progress in Switzerland and Belgium.

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