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BNP Paribas AM U.S. Inflation-Linked Bond Fund

The BNP Paribas AM U.S. Inflation-Linked Bond (ILB) Fund seeks to generate alpha by identifying mispricings and using repeatable trading strategies that incorporate monetary policy, auction dynamics and inflationary trends

Competitive strengths

Our process incorporates macro-fundamentals related to the economy and inflation, micro-market and security specific dynamics and valuation tools to determine mispricings and evaluate opportunities.

  • Invest  in real and nominal government securities, offering alpha unique to the asset class intended to protect against unanticipated rise in inflation
  • Active Management Can Deliver Significant Alpha – once active, our fund will actively position portfolio duration and seek returns above the benchmark using repeatable trading strategies that incorporate monetary policy, auction dynamics, and inflationary trends. Risk systems are used to monitor and control risk on a trade-by-trade basis.
  • Portfolio managers trade directly with dealers, gathering first-hand market intelligence.


Team

This fund is managed by our dedicated Inflation-Linked Bond team with extensive investment experience, including market-making and experience at the Federal Reserve and Bank of England.

  • Lead fund manager: Cedric Scholtes, Co-Head of Inflation-Linked Bond team, Rates Committee Chair, 18 years of experience.
  • 4 experienced team members with an average of 12 years in this asset class

 

The BNP Paribas Asset Management (BNPP AM) Funds are distributed by SEI Investments Distribution Co. (SIDCO). The Funds are managed by BNP PARIBAS ASSET MANAGEMENT USA, Inc. (BNPP AM), an investment adviser under the Investment Advisers Act of 1940, and a subsidiary of the BNP Paribas group. BNPP AM is the global brand name of the BNP Paribas group’s asset management services. SIDCO is not affiliated with BNPP AM.

There are risks involved with investing, including possible loss of principal. Bonds and bond funds generally decrease in value as interest rates rise. Inflation-linked debt securities are subject to the effects of changes in market interest rates caused by factors other than inflation. TIPS can provide investors a hedge against inflation, as the inflation adjustment feature helps preserve the purchasing power of the investment. Because of this inflation adjustment feature, inflation protected bonds typically have lower yields than conventional fixed rate bonds and will likely decline in price during periods of deflation, which could result in losses. The primary risk of derivative instruments is that changes in the market value of securities held by the fund and of the derivative instruments relating to those securities may not be proportionate. Derivatives are also subject to illiquidity and counterparty risk. International investments may involve risk of of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from social, economic, or political instability in other nations. There is no guarantee the fund will achieve its stated objective.

Alpha represents return generated above the benchmark used for each strategy.

To determine if the Fund is an appropriate investment for you, carefully consider the Fund’s investment objectives, risk, and charges and expenses. This and other information can be found in the Fund’s prospectus. Please read the prospectus carefully before investing.

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