On the back of the success of Oddo Rendement 2017, Oddo Asset Management (AM) is launching a new target-dated fund that is invested in corporate and convertible bonds and thereby able to take advantage of high-yield opportunities arising on the bond markets for the period through to 2017: Oddo Haut Rendement 2017.
Oddo AM calls on its experience as a pioneer in the management of target-dated fixed income funds and its renowned expertise, with its total inflow topping one billion euro for this type of strategy. Oddo Rendement 2017 attracted EUR 548 million in fund inflows during its distribution period (September 2011 — end-March 2012) and has already notched a performance of +11% as at 4 May 2012.
Oddo Haut Rendement 2017 is managed by the same team that manages Oddo Rendement 2017 (ie Xavier Hoche, Muriel Blanchier and Anne-Claire Daussun), which has been boosted by the arrival of a new analyst (Laure Desbrosses). Oddo Haut Rendement 2017 aims to offer a high yield by selecting stocks with a maturity that does not extend more than six months beyond 31 December 2017.
The key features of the fund’s management are:
A gross annual return at maturity of 7.52% (as at 2 May 2012), if no default
An investment universe that favours stocks which are thought to have the highest potential among high-yield bonds, i.e. with a rating below BBB- or unrated
A discretionary management style based on the thorough analysis of each stock
An active approach to portfolio management in order to keep credit risk under control
A diversified portfolio targeting a composition of approximately 70 to 90 holdings, offering a spread across different sectors (all business sectors may be represented) and regions (with the possibility of investing up to 50% of assets outside of Europe)
Co-fund manager Xavier Hoche, says: “this new fund meets the demand of a large number of retail and institutional investors in France and abroad who are seeking straightforward and diversified fixed-term products.”
The fund’s subscription period ends on 30 November 2012.