Ostrum AM completes its range of short-term credit solutions and launches the Ostrum Credit 6M fund
10/20/2022PRESS RELEASES EXPERTISES
Ostrum Asset Management (Ostrum AM), an affiliate of Natixis Investment Managers, announces the launch of its new fund Ostrum Credit 6M. As an alternative to standard money market funds, it completes Ostrum AM's short term money credit range and responds to cash management challenges with a 6-month horizon. In a context of rising interest rates and high volatility, Ostrum Credit 6M meets the expectations of all investors, particularly corporates, seeking to optimise their short-term investments.
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Stabilising cash management over a 6-month horizon
Ostrum Credit 6M is a very short-term credit fund that seeks to optimise return while maintaining a limited level of risk and volatility, as well as low interest rate and credit sensitivity. The fund invests in a wider universe than money market, mainly Investment Grade, which allows it to benefit from additional sources of added value, over a wider spectrum of maturities (from "overnight" to "2-3 years") or asset types. For example, the fund can invest in high yield bonds up to a maximum of 5 %. Eligible for the SRI label1, the fund integrates the analysis of the impact of ESG factors (Environment, Social, Governance) on credit quality and risks/opportunities, the objective being to obtain the label by Q1 2023.
Offering an alternative to standard money market funds
Ostrum Credit 6M is an investment solution particularly appreciated by companies, in the framework of their IAS 7 (International Accounting Standards) accounting regulations under IFRS (International Financial Reporting Standard), because of its possible classification by the auditor as a very short-term credit fund, a substitute to standard money market funds. For this purpose, Ostrum Credit 6M meets four essential criteria: short term horizon, liquid investment, easily convertible into a known amount of cash, negligible risk of change in value. Ostrum Credit 6M can also meet other client needs: diversification in a short-term pocket, investment to wait for entry points on longer-term credit or a solution to help limit the risk of a bond portfolio.
Benefiting from the expertise of a leader in fixed income management and short-term credit solutions
With €46bn in money market funds and €9bn in short-term credit funds2, Ostrum AM is a European leader in fixed income management with over 35 years of experience in this asset class3. Ostrum Credit 6M is managed by Fairouz Yahiaoui and Thibault Michelangeli, both experienced bond portfolio managers, who rely on one of the largest in-house credit research teams in Europe4.
The Ostrum Credit 6M fund is the latest addition to Ostrum AM's range of short-term credit solutions, which now comprises five funds with a variety of Investment Grade and High Yield exposures and investment horizons ranging from 6 months to 3 years.
Philippe Berthelot, CIO Credit & Money Markets at Ostrum AM, said: "In a context of rising interest rates and high volatility, the Ostrum Credit 6M fund places particular emphasis on liquidity and active exploitation of the risk envelope to seek to mitigate the sensitivity of the portfolio to rate movements.”
1. The SRI label was created in 2016 by the Ministry of Economy and Finance. Its aim: to enable savers, as well as professional investors, to distinguish investment funds implementing a robust socially responsible investment (SRI) methodology, leading to measurable and concrete results. For more information: https://www.lelabelisr.fr/
2. Source: Ostrum AM - as of June 2022
3. Ostrum AM is the result of the spin-off, on 1 October 2018, of the bond and equity management activities of Ostrum AM, RCS Paris 329 450 738, formerly Natixis AM.
4. Composed of 23 analysts including 21 credit analysts and 2 dedicated to sustainable bonds. The team covers the analysis of more than 1.200 issuers worldwide.
Risks of the Ostrum Credit 6M fund: the Fund invests in bonds denominated in euro. Bond investments are generally sensitive to changes in interest rates, and the Fund may lose value if European interest rates rise. The Fund is also exposed to the possibility that the issuer may not be able to repay the holders of its debt (principal and interest). The Fund is subject to other risks, but not limited to: Risk of capital loss, Credit risk, Counterparty risk, Liquidity risk, Impacts of management techniques including Forward Financial Instruments, & Sustainability risk, Risk of capital loss. Other investment risks are listed in the section "Main Risks" of the Prospectus.
Ostrum Credit 6M is a French mutual fund established in France, authorised by the French Autorité des Marchés Financiers. Natixis Investment Managers International is the management company by delegation of financial management to Ostrum AM.
Please refer to the fund's prospectus and key investor information document before making any final investment decision. The Prospectus is available on the website of the fund management company.
The analyses and opinions mentioned in this document represent the views of the referenced author(s). They are issued on the date indicated, are subject to change and should not be construed as having any contractual value.
References to a ranking, award, label and/or rating are not intended to prejudge the future performance of the funds.
About Ostrum Asset Management
Ostrum Asset Management draws on its investment expertise to enhance the impact of its clients’ commitments as they act together to support European citizens’ life plans, health and retirement.
A European institutional investment management leader1, Ostrum Asset Management supports its clients in their liability-driven investments, offering both asset management solutions on the back of its long-standing fixed-income and insurance-related management expertise (equity and fixed income), and investment services via its innovative technological platform.
Ostrum Asset Management is a well-established responsible investment advocate2 and manages €389 billion3 in assets for large institutional clients – insurers, pension funds, health insurers, corporations – as well as €542 billion3 in assets under administration for professional investors worldwide across all asset classes.
Ostrum Asset Management is an affiliate of Natixis Investment Managers.
Asset management company regulated by AMF under n° GP-18000014 – Limited company with a share of 48 518 602 €. Trade register 525 192 753 RCS Paris – VAT : FR 93 525 192 753. Reigstered office: 43, avenue Pierre Mendès-France – 75013 Paris – www.ostrum.com
1. IPE Top 500 Asset Managers (Investment & Pensions Europe) 2022 ranked Ostrum AM as the 11th largest asset manager, as at 12/31/2021. Any reference to a ranking, a rating or an award provides no guarantee for future performance.
2. Ostrum AM was one of the first French asset manager signatories to the PRI in 2008. More details; www.unpri.org
3. Source: Ostrum Asset Management, consolidated data at end-June 2022. Administered assets include Ostrum AM's assets. The services provided for a given client may concern certain services only.
About Natixis Investment Managers
Natixis Investment Managers’ multi-affiliate approach connects clients to the independent thinking and focused expertise of more than 20 active managers. Ranked among the world’s largest asset managers1 with more than $1.1 trillion assets under management2 (€1.1 trillion), Natixis Investment Managers delivers a diverse range of solutions across asset classes, styles, and vehicles, including innovative environmental, social, and governance (ESG) strategies and products dedicated to advancing sustainable finance. The firm partners with clients in order to understand their unique needs and provide insights and investment solutions tailored to their long-term goals.
Headquartered in Paris and Boston, Natixis Investment Managers is part of the Global Financial Services division of Groupe BPCE, the second-largest banking group in France through the Banque Populaire and Caisse d’Epargne retail networks. Natixis Investment Managers’ affiliated investment management firms include AEW; AlphaSimplex Group; DNCA Investments3; Dorval Asset Management; Flexstone Partners; Gateway Investment Advisers; Harris Associates; Investors Mutual Limited; Loomis, Sayles & Company; Mirova; MV Credit; Naxicap Partners; Ossiam; Ostrum Asset Management; Seeyond; Seventure Partners; Thematics Asset Management; Vauban Infrastructure Partners; Vaughan Nelson Investment Management; and WCM Investment Management. Additionally, investment solutions are offered through Natixis Investment Managers Solutions and Natixis Advisors, LLC. Not all offerings are available in all jurisdictions. For additional information, please visit Natixis Investment Managers’ website at im.natixis.com | LinkedIn: linkedin.com/company/natixis-investment-managers.
Natixis Investment Managers’ distribution and service groups include Natixis Distribution, LLC, a limited purpose broker-dealer and the distributor of various U.S. registered investment companies for which advisory services are provided by affiliated firms of Natixis Investment Managers, Natixis Investment Managers S.A. (Luxembourg), Natixis Investment Managers International (France), and their affiliated distribution and service entities in Europe and Asia.
NATIXIS INVESTMENT MANAGERS INTERNATIONAL
Limited company. Authorized by the Autorité des Marchés Financiers (French Financial Markets Authority - AMF) under no. GP 90-009. Registered office: 43, avenue Pierre Mendès-France - 75013 Paris
1. Cerulli Quantitative Update: Global Markets 2022 ranked Natixis Investment Managers as the 18th largest asset manager in the world based on assets under management as of December 31, 2021.
2. Assets under management (“AUM”) of current affiliated entities measured as of June 30, 2022 are $1,156.7 billion (€1,106.7 billion). AUM, as reported, may include notional assets, assets serviced, gross assets, assets of minority-owned affiliated entities and other types of non-regulatory AUM managed or serviced by firms affiliated with Natixis Investment Managers.
3. A brand of DNCA Finance.