Bringing you live news and features since 2006 

Green globe

CPR AM expands fixed income range with CPR Invest – Smart Beta Credit ESG Fund

RELATED TOPICS​

CPR AM has expanded its fixed income range with the launch of CPR Invest – Smart Beta Credit ESG Fund, an open-ended fund incorporated in Luxembourg that aims to achieve a return comparable to the euro-denominated investment grade credit market, with a lower risk over the long term.

The fund is managed by Fanny Jacquemont and is based on a quantitative model developed by CPR AM’s research team. 
 
Julien Daire, head of fixed income and credit, says: “Investors are constantly searching for yield in this low interest rate environment. But because of on-going geopolitical uncertainty, accessing credit with the lowest level of risk possible is more critical than ever.”
 
To achieve the optimal risk-reward ratio over a long-term horizon, the Fund’s investment universe focuses on securities with a maturity of less than five years within the BBB- to BB rated segments of the market. The team will closely look at the specific risks associated with credit issuers, because especially for the credit markets performance is not significantly better when premium securities are selected, but returns can be largely impacted if lower quality securities are selected. 

The fund underweights securities most impacted by an increase in spreads and overweights those offering higher returns.

CPR AM’s quantitative model incorporates a liquidity risk factor which is particularly important for credit.  The team carefully monitors micro-level asset class liquidity that is of critical importance in times of market stress. The final portfolio contains about 300 securities.

The Fund is registered in Austria, Belgium, Spain, Finland, France, Netherlands, Czech Republic, United Kingdom and Sweden.

Noémie Hadjadj-Gomes, Deputy Head of Research at CPR AM, adds: “Smart Beta credit strategies are attractive in the current environment as they provide diversification to traditional credit without incurring duration risk, additional credit risk, or behavioural investing bias.”
 
CPR Invest – Smart Beta Crédit ESG is designed for investors wishing to gain exposure to investment grade bonds denominated in euros with a defensive risk profile and/or an awareness of ESG criteria.

Latest News

ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..
Investors urgently need greater access to diversified investment strategies aligned with the Paris Agreement on climate change if the world..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by