BNP Paribas Asset Management (BNPP AM) has launched the Parvest QIS Multi-factor Credit Euro IG, a smart beta strategy investing in euro-denominated investment grade corporate bonds.
The €108m Parvest QIS Multi-factor Credit Euro IG fund, which was launched in January as part of the smart beta fund range and is managed by the quantitative team of the BNPP AM’s Multi-Asset Quantitative & Solutions unit, is now available to UK investors.
The fund applies the multi-factor approach to corporate bonds following the launch of factor strategies investing in equities, government bonds, and currencies.
This multi-factor approach systematically analyses fundamental indicators and market data to identify those bonds within the investment universe offering the best prospects for risk-adjusted returns. The fund managers aim to outperform their benchmark at an equivalent level of risk.
The launch will allow BNPP AM to expand its range of smart beta strategies into fixed income, giving investors the ability to diversify their bond investments through a multi-factor quantitative approach.
Olivier Laplénie, Head of Quantitative Fixed Income at BNP Paribas Asset Management, says: “The multi-factor approach used to manage Parvest QIS Multi-factor Credit Euro IG is the fruit of many years of research into drivers of bond market performance. By combining our bond market expertise with that of our quantitative research teams, we have been able to identify various indicators from both the equity and credit markets and company balance sheets that are the main drivers of corporate bond returns.”