The expert magazine of Ostrum AM

A ‘Buy & Maintain’ approach is anything but passive. The bond market equivalent ‘Buy & Hold’ management, the strategy features low portfolio turnover, as most assets are intended to be held to maturity.

For a Buy & Maintain investment manager, what’s most important is the probability of not defaulting through to maturity

  • Farhat Selmi

    Farhat Selmi

    Insurance fixed income investment manager

Key Takeaways

  • A selection of securities designed to be held to maturity
  • Active monitoring of portfolio positions based on in-depth credit analysis
  • Possibility of conducting arbitrage to:
    • capture market opportunities for improved yield
    • sell securities to avoid default
  • Low portfolio turnover that optimises transaction costs  

 

Understanding the "Buy & Maintain" approach

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