The Strategic Corporate Bonds Fund holds issuance from companies with a rating of at least BBB-, or the equivalent from principal rating agencies.
Alex Eventon manages the fund within Oddo's fixed income team, led by Alain Krief.
The fund uses a conviction-based approach and has real flexibility relative to its benchmark. This active management aims to capture market gains and to contain losses during downward phases.
The fund’s investment strategy has three areas of flexibility – credit exposure, breadth of duration and geographical and sector exposure.
Depending on market conditions, the fund can invest without constraint within the investment-grade rating category from BBB- to AAA, with a 10% maximum limit on high yield or non-rated bonds.
In terms of interest rate sensitivity, duration may vary between 0 and 6, making it possible to reduce interest-rate risk with a shorter duration during periods when interest rates are rising.
Diversification is introduced with a maximum of 30% in any one geography with exposure to other issuers located outside Europe and in other currencies provides access to a broader investment universe.
“The three areas of flexibility are essential levers to optimise the fund’s risk/return profile, notably a broader range of duration to contain interest-rate risk,” said Alain Krief, head of Oddo Asset Management’s fixed income team.
Available in dollar and euro share classes, the fund applies a fixed management fee of 0.5% or 1% (retail or institutional) and charges a 10% maximum performance fee if the fund outperforms its benchmark – the Barclays Aggregate Corporate TR Euro index.
