French Groupama AM reshapes money market fund
Groupama Asset Management has renamed its money market fund giving it a designation closely aligned with the fund's typologies of investors.
The Groupama Cash Equivalent fund has been rebranded as the Groupama Ultra Short Term Bond fund in line with a change of strategy consisting of a reshaping of a money market fund into a ultra-short term bond fund in a move aimed at opening the strategy to new investors.
The strategy continues to be eligible as a cash equivalent, which requires to invest in short-term, liquid, easily convertible into a cash amount and relatively insensitive to variation risk.
The Fund is invested in investment grade fixed income and money market instruments denominated in euros with the aim of exploiting sensitivities to interest rates, geographical and sector allocation as well as a rigorous selection of issuers.
The €1.27bn strategy was launched in 2015 with the aim of providing a solution that allowed managers to extend the period conventionally proposed by money-market management, in order to offer a more attractive risk/reward trade-off.
