Looking for short-term investment?
The planned phasing out of ECB’s quantitative easing programme at the end of the year and the expected normalisation of monetary policy will probably drive euro short-term interest rates higher. But we expect the ECB to keep a “dovish” stance and to raise its deposit rate, currently set at -0.40%, no sooner than in the summer of 2019. And at that point, we expect the ECB to still keep the rate in negative territory.
Why not check out our ultra short-term credit expertise?
So the negative rate environment should continue to prevail on euro money markets in the coming months.
So why not check out our ultra short-term credit expertise? It is currently ranked 1st decile year-to-date and for 1,3 and 5 years in the Morningstar Ultra Short-Term category, and has been also awarded with a 5-star rating. As per its investment guidelines, our ultra short-term credit expertise maintains a very low WAL* (<1 year) and WAM** (<0.5) and no single investment can have a maturity of more than 2 years. So it can be an ideal option for investors focusing on very short-term credit.
More informations: Ostrum Ultra Short Term Bonds Plus
Main risks: Capital loss, Credit, Interest rates, Below investment grade securities.
*WAL (Weighted Average Life, a measure of the portfolio’s average maturity)
**WAM (Weighted Average Maturity, a measure of the portfolio’s average interest rate sensitivity)
Source: Ostrum AM.
The analyses and opinions referenced herein represent the subjective views of the author(s) as referenced, are as of the date shown and are subject to change without prior notice. There can be no assurance that developments will transpire as may be forecasted in this material.
Data as of 30.09.2018. Any reference to a ranking, a rating or an award provides no guarantee for future performance and is not constant over time. Reference to a ranking and/or an award does not indicate the future performance of the strategy or the fund manager. Methodology available on: www.morningstar.com.
Performance objective of the representative account (net of fees): Outperform daily-capitalized EONIA + 0.90%, over a recommended investment horizon of 2 years.