Comprehensive European fixed income range from traditionally benchmarked to unconstrained.

Our eurozone multi-sector fixed income strategies are run from our Euro Fixed Income team based in Paris and London. The team employs a high level of product customization/innovation and customer servicing to best meet clients’ needs.

EUR 43.6 bn

assets under management

Track record since

1996

10

dedicated investment professionals

Investment Philosophy and Process

We base our management of euro bonds on the following principles:

  • Fundamental analysis: long-term interest rate trends and their correlation with different markets mainly result from an analysis of the macro-economic environment, which helps identify inflation and credit movements;
  • Active portfolio management: studying the relative value between bonds makes it possible to identify daily investment opportunities as part of our long-term views since market prices are generated as a result of the expectations of market players who take varying levels of risk and have different investment horizons (issuers, investment funds, portfolio managers, traders, etc.). This research is based on our detailed analysis of capital flows, excessive market consensus and changes in regulatory constraints; and
  • Risk management: a specific risk approach via realistic scenarios is necessary to respond to the challenge of asymmetry between gains and losses in bond portfolios.

Based on these principles, the management team uses an active and technical style to generate the best return given controlled risks while seeking to avoid systemic risk (issuer default, market crashes) by implementing:

  • A fastidious and disciplined selection of management strategies (issuers, issuance, etc.); and
  • In-house tools dedicated to integrating market scenarios as well as client constraints.
  • Eurozone Aggregate Fixed Income

    Our flagship strategy invests primarily in investment-grade sovereign and corporate bonds across the maturity range from the eurozone. Actively managed, the strategy has a 22-year track record and is benchmarked against the Barclays Euro Aggregate Index.

    It is a well-diversified portfolio, typically investing in 100-125 issues.

    We also offer short-duration (6 months to 1 year,  1–3 years and 1-5 years) and medium-duration (3–5 years and 3-7 years) eurozone aggregate fixed income strategies, run according to exactly the same process as our eurozone aggregate fixed income strategy (mentioned above), which can invest in bonds of any maturity.

    • Well-diversified investment-grade eurozone aggregate fixed income strategy
    • Combined top-down / bottom-up investment process that efficiently allocates risk across sectors and maturities throughout investment cycles
    • Strict risk  control
    • Well-resourced, experienced and stable investment team dedicated to the eurozone bond market
  • Eurozone Sovereign Fixed Income

    We offer two Eurozone sovereign strategies.

    The first is an investment-grade strategy offering pure sovereign risk across all maturities.  This flagship strategy is actively managed and has a 22-year track record and is benchmarked against the Barclays Euro –Aggregate Treasuries Index.

    It is a well-diversified portfolio, typically investing in 75-100 issues.

    The second is an opportunistic investment-grade strategy offering exposure to AAA eurozone sovereign bonds across all maturities.  It is actively managed and has a track record that started in June 2010.  It is benchmarked against the Barclays Euro Aggregate Treasury AAA Index.

    It is a concentrated portfolio, typically investing in 50-75 issues, as the market has only five issuers and is rather narrow.

    • Choice of well-diversified or concentrated investment-grade eurozone aggregate fixed income strategy
    • Combined top-down / bottom-up investment process that efficiently allocates risk across sectors and maturities throughout investment cycles
    • Strict risk control
    • Well-resourced, experienced and stable investment team dedicated to the eurozone bond market
  • Euro Inflation-Linked Strategy

    We offer pure inflation strategies through inflation-linked and nominal bonds as well as through derivatives linked to inflation (IRS).

    Our euro inflation-linked strategy is actively managed and has a 17-year track record. It is benchmarked against the Barclays Euro-Inflation Linked Eurozone All CPI Bond Index.

    The portfolio is typically invested in 30-40 issues.

    • Provides a strategic allocation among linkers depending on breakeven inflation (French vs. Euro) and the level of real interest rates
    • Identifies market inefficiencies allowing the team to exploit the higher volatility generated by different actors in the bond markets in the short run
    • Strict risk control
    • Well-resourced, experienced and stable investment team dedicated to the eurozone bond market