La Française unveils fixed maturity fund

Eugenia Jiménez
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La Française unveils fixed maturity fund

French asset management group La Française has launched the fixed maturity fund La Française Rendement Global 2025, following the success of its previous edition La Française Rendement Global 2022.

The new fund, mainly positioned on European/US credit and emerging debt, concerns a portfolio of international bonds with a maximum maturity date of December 2025.

Its management strategy consists of combining the carry and arbitrage of securities, in the event of new market opportunities or an increased risk of default of a portfolio issuer.

La Française Rendement Global 2025 may invest as follows: up to 100% in bonds issued by public and/or private entities in OECD countries; up to 100% in bonds issued by public entities outside of OECD countries (emerging); up to 50% in private entities outside of OECD countries (emerging); up to 100% in Investment Grade2 or High Yield3 issues (of a speculative nature) or in unrated issues.

Jean-Luc Hivert, CIO Fixed Income of La Française, said: “In the quest for performance, we believe the credit sector and especially BB or B rated issues offer the best risk/return ratio, especially since the default rates are still relatively low: the average long-term default rate is 4.3% (over 20 years as of September 2017).”