Absolute Return  

BNP Paribas launches Absolute Return fund

BNP Paribas launches Absolute Return fund

BNP Paribas Asset Management has launched a new absolute return fund, in response to what it says are expensive equity valuations.

The Parvest Global Equity Absolute Return Strategy (Parvest Gears) fund, will be be managed by BNP Paribas Asset Management's Global Equity Team, headed by Simon Roberts.

The group said that, with equity valuations considered expensive at current market levels on a range of measures, many investors are increasingly looking for absolute return strategies that have a low correlation with underlying markets and the ability to generate alpha regardless of market direction.

Mr Roberts said: "Our experience of managing similar strategies and our ability to demonstrate that we can protect capital and generate alpha in a range of market environments is attractive to investors looking for diversification and to avoid market fluctuations.

"With the appetite for Ucits-compliant absolute return products continuing to strengthen, Parvest Gears enables a wider range of investors to access our strategy and investment processes."

However Minesh Patel, managing director of advice firm EA Financial Solutions, said he believed the market was quite saturated with Absolute Return Funds.

He said: "I don't think there is the appetite from investors or financial planners.

"I have done the research and it is my opinion that multi-asset funds deliver better and tend to have lower charges.

"That said, BNP Paribas has a good brand and I can see their rationale in entering this market."