The BNP Paribas L1 Multi-Asset Income fund, which is rated four stars by Morningstar and targets an income of 4% per annum has surpassed EUR600 million in assets.
The fund offers an all-in-one solution targeting income generation through a flexible and diversified multi-asset portfolio. The fund is managed using a fundamental approach and dynamically invests across various income-generating global asset classes, including high income equities, high income listed real estate, investment grade corporate bonds, high yield bonds and government bonds.
The diversification offered by multi-asset strategies gives investors exposure to several asset classes to seize opportunities as they arise and take advantage of different market conditions. Generally a diversified strategy may offer a better risk-return potential than investing in a single asset class: Yields on bond investments may be too low for some investors whilst investing in equities may be too risky for others. A multi-asset approach could be considered to balance the pursuit of higher return whilst mitigating risk. Over the past 5 years the fund has generated a total return gross of fees of almost 9% per annum.
The BNP Paribas L1 Multi-Asset Income fund has enjoyed substantial inflows over the last year, benefitting from the growing interest from investors such as retirees seeking to enhance their income in a low yield environment.
Bart Van Poucke, fund manager of the BNP Paribas L1 Multi-Asset Income, says: “The fund’s diversification ensures that the pursuit of income is not carried out at the expense of risk. We seek to capture income not only through our flexible asset allocation but also within each individual asset class. Based on their fundamental views, our equity experts select securities with the potential to provide an attractive and growing dividend for investors. Similarly, our experienced credit teams focus on rigorous selection of investment grade and high yield bonds for the portfolio. We currently see attractive opportunities within equities, and particularly European equities. Recovery in Europe has been hindered by its banking system but we believe the European Central Bank is taking important steps to address this. Dividend yields in European stocks are also currently higher than those in the rest of the developed world.”
