BNP Paribas Asset Management (BNPP AM) has expanded its multi-factor range with the range of a quantitative fund investing in dollar-denominated investment grade credit.
Launched on 27 June, the Parvest US Multi-Factor Corporate Bond is managed by the quantitative team within BNPP AM's Multi-Asset, Quantitative & Solutions (MAQS) investment.division.
The new strategy is the latest addition to the firm's multi-factor range following the launch of the Parvest QIS Multi-factor Credit Euro IG last year.
The fund's investment approach combines several factors, including momentum, quality, valuation and risk. It is based on quantitative analysis of fundamental indicators and market data, aiming to identify those bonds expected to deliver the best returns while maintaining a level of risk equivalent to that of its benchmark.
The six funds from the range integrate ESG criteria into their investment process and have a SRI certification under the guidelines set out by the Ministry of Economics & Finance.
Olivier Laplénie, Head of Quant Fixed Income Portfolio Management at BNPP AM, says: "BNP Paribas Asset Management is one of the first asset managers to offer such a full range of multi-factor funds, and the fact that six funds in the range now have SRI certification gives investors greater visibility."
Charles Cresteil, Quantitative Investment Specialist at BNPP AM, adds: "Parvest US Multi-factor Corporate Bond offers a complementary solution to investors seeking to diversify their bond exposure. The launch of a dollar credit fund alongside the existing euro fund means that the range now covers the main regions in both equity and fixed-income markets.
"Furthermore, the integration of ESG criteria into the investment process means that the funds meet investors' growing demand for sustainable investment solutions."