Groupama AM launches unconstrained HY fund

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Groupama AM launches unconstrained HY fund

The investment arm of French insurer Groupama, Groupama Asset Management, has launched the G Fund Euro High Yield Bonds, which is a sub-fund of the firm’s Luxembourg-domiciled Sicav G Fund.

The new fund follows an unconstrained bond-picking strategy and invests primarily in euro-denominated high yield corporate bonds. Though subordinated debt investments are capped to 25% of the portfolio exposure while that of investment grade BBB-rated and unrated bonds cannot exceed 20%.

Groupama AM managed some €1.2bn in unconstrained strategies as of end January 2018. The G Fund Euro High Yield Bonds is run by the high yield credit team of Groupama AM, including Nicolas Gouju, portoflio manager-analyst and Gabrielle Capron, analyst, both reporting to head of Credit Stéphan Mazel. It had €51.9m of assets under management as of 28 February 2018.

The French manager’s new vehicle combines three different drivers and applies a bottom-up approach: a core strategy focused on a selection of issuers that demonstrate a good visibility on a year, a carry strategy and a tactical strategy. A derivative overlay approach and an active management of the portfolio beta are implemented as well.

Thierry Goudet, head of Business Development at Groupama AM, announced that Groupama AM will further launch new unconstrained strategies, noting that investors interest for this type of funds does not fade.