Paris-headquartered BNP Paribas Investment Partners (BNPP IP) has launched its first multi asset income fund focusing on emerging markets, Parvest Multi-Asset Income Emerging.
It is a sub-fund of the Luxembourg-domiciled Parvest Ucits V Sicav.
The manager said the fund has been launched to address demand from clients looking for alternative sources of income and wanting to rise their emerging market exposure.
Parvest Multi-Asset Income Emerging relies on the multi asset solutions team’s top-down, macro-based fundamental active asset allocation process, combined with bottom-up active security selection at the asset class level, based on extensive knowledge and strong presence in emerging markets.
BNPP IP specified the fund will invest in the main emerging market asset classes of equities, local sovereign debt, external sovereign debt, corporate debt, currencies and commodities.
The EM equities and fixed income’s buckets will form between 0% and 80% of the fund composition depending of the team’s allocation views.
BNPP IP’s multi asset solutions team managed over €70bn as of 30 June 2016.
Commenting the launch, Colin Graham, CIO of Multi Asset Solutions at BNP Paribas Investment Partners, said: “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. Market dispersion has risen of late, meaning that not all emerging markets are equal.
“The emerging markets universe consists of multiple asset classes, each with different risk and return profiles and different behaviours, depending on the economic cycle. By combining our established multi-asset income capabilities with the first-hand knowledge and understanding of emerging markets that our strong local presence gives us, 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.”
BNPP IP had €532bn of assets under management as at 30 June 2016.