The asset manager for a changing world
BNP PARIBAS ASSET MANAGEMENT - TM Other selection 1 1440x300

Factor Based Fixed Income

 

We offer a broad range of fixed income strategies with a pure factor approach based on decades of experience and quantitative research.

Our approach is designed to deliver improved risk-adjusted returns , through systematic security selection, building on the factors most likely to drive long-term performance while controlling for directional  market risks.  As a result, our multi-factor strategies bear very low correlations compared to traditional investments, and can be used as sources of diversification. Our strategies are based on a combination of factors which are linked to four main investment themes: carry (or value); fundamentals; momentum; and low risk.

We offer a complete and comprehensive factor-based approach covering the major segments of the fixed income market, specifically government bonds, corporate bonds and currencies. The key differentiator of our approach is not solely how we select factors but also how we build them to be as pure and unbiased as possible in terms of risk. This is because we aim to clearly separate the returns generated by our security selection from those resulting only from directional risks. As such, we aim to create ‘enhanced factors’ compared to standard versions.

 

€1.8bn
assets under management
5 / 42
dedicated investment professionals / quant investment professionals overall
2009
began managing quant fixed income

Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the strategies described being in risk of capital loss. There is no guarantee that the performance objective will be achieved. Past performance or achievement is not indicative of current or future performance. Source: BNP Paribas Asset Management as of 30 December 2018, unless otherwise stated.