In brief
An alternative to euro credit management offering a better remuneration of risk over the long term
The fund is a pure component of credit allocation in direct securities. Its objective is to achieve a performance equivalent to that of the Investment Grade credit asset class, with a regularly lower level of risk. It fits into a context of durably low interest rates, more and more constraining prudential regulations and rising market uncertainties (political risk, shrinking growth perspectives).
Two complementary frameworks for extra-financial and financial specific risk
As a complement to credit analysis for the management of specific risk, the fund incorporates Environmental, Social, and Governance (ESG) criteria as an integral component of the low risk strategy. In order not to loose information that is related to the different criteria gathered in the average ESG score, issuers are filtered on both such average and on their scores for each of the criteria that are currently deemed material depending on the region (annual review).
An innovative systematic factor management
Systematic management is transparent, unbiased, and provides the ability to cover large universes and to better monitor the strategy according to the different market regimes. Factor construction relies on components selected for their relevance in the Credit asset class and their complementarity, and aimed at reducing risk without sacrificing performance. Moreover, such low risk factor puts a strong emphasis on liquidity, in order to reduce the cost of turnover.
