BNP Paribas Investment Partners has launched its first multi-asset income fund focused on emerging markets, the company has announced.
The Parvest Multi-Asset Income Emerging fund will be managed by the multi-asset solutions team. It has been created in response to demand from clients who are looking for alternative sources of income.
The fund aims to target stable and regular income, in line with its other income products managed by the multi-asset solutions team, by dynamically allocating across emerging market asset classes and regions.
This new fund will mainly invest in equities, local sovereign debt, corporate debt, currencies, and commodities. It weighting to equities and fixed income will vary significantly, with both ranging between 0% and 80% of the overall portfolio.
The multi-asset solutions team has been managing income portfolios for over 10 years and as of 30 June 2016, manages over €70 billion.
Colin Graham, CIO of multi-asset solutions at BNP Paribas Investment Partners, said market dispersion had recently risen, meaning not all emerging markets were equal.
‘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.’
‘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.'
This latest launch follows the announcement that the firm has set out ambitious strategic plans to accelerate the assets managed through passive strategies overseen by its subsidiary THEAM.
The Luxembourg-domiciled fund is available for sale in Singapore only in the Asian region.