Fixed Income Investments
OFI AM’s fixed-income bond investment team develops creative management solutions with a view to achieving absolute return on bonds, money market instruments and currencies.
Its range of products, based on fundamental, technical, psychological and quantitative market evaluation tools, aims to deliver absolute performance regardless of the behaviour of the underlying asset classes, in an environment where the overall risk level is perfectly controlled.
Investment Philosophy
Our strategy aims to redefine the role of bonds and to reinvent that of currencies within a portfolio weighted heavily in fixed-income assets.
To this end, our bond investment policy aims to free itself from market cycles, looking for stabilising factors in the bond risk/reward profile while seeking out alpha sources through diversified, directional or arbitrage strategies.
We operate on the widest possible range of investment options , in order to deliver non-correlated performance, increase freedom when it comes to choosing financial instruments, and fine-tune the extent to which performance can be controlled.
Management Report
As we had anticipated, 2006 was not a good year for bond markets. World economic growth and the marked increase in liquidity and credit led numerous central banks to raise their key interest rates, leading to a fall in the bond markets.
The European markets recorded a negative performance (-0.30% for the index of euro zone government bonds) for the first time since 1999.
The major indices of international government bonds fell by almost 5%. In this delicate environment, our range of bond funds , less vulnerable to cycles and focused on absolute performance and thus not correlated with the markets, has done very well.
All of our products posted positive returns. The OFI EURO MT fund is ranked 11th in its category. OFI International Bond Return recorded a gain of 1.15% (compared with a fall of 4.75% for the JPM Global Bond index), especially as a result of judicious asset allocations increasing our exposure to fixed-income instruments and currencies on emerging markets.
In 2007, we aim to continue to improve our absolute return processes and market analysis filters.
We also plan to enrich our range of bond issues by adding an SRI product.
Its range of products, based on fundamental, technical, psychological and quantitative market evaluation tools, aims to deliver absolute performance regardless of the behaviour of the underlying asset classes, in an environment where the overall risk level is perfectly controlled.
Investment Philosophy
Our strategy aims to redefine the role of bonds and to reinvent that of currencies within a portfolio weighted heavily in fixed-income assets.
To this end, our bond investment policy aims to free itself from market cycles, looking for stabilising factors in the bond risk/reward profile while seeking out alpha sources through diversified, directional or arbitrage strategies.
We operate on the widest possible range of investment options , in order to deliver non-correlated performance, increase freedom when it comes to choosing financial instruments, and fine-tune the extent to which performance can be controlled.
Management Report
As we had anticipated, 2006 was not a good year for bond markets. World economic growth and the marked increase in liquidity and credit led numerous central banks to raise their key interest rates, leading to a fall in the bond markets.
The European markets recorded a negative performance (-0.30% for the index of euro zone government bonds) for the first time since 1999.
The major indices of international government bonds fell by almost 5%. In this delicate environment, our range of bond funds , less vulnerable to cycles and focused on absolute performance and thus not correlated with the markets, has done very well.
All of our products posted positive returns. The OFI EURO MT fund is ranked 11th in its category. OFI International Bond Return recorded a gain of 1.15% (compared with a fall of 4.75% for the JPM Global Bond index), especially as a result of judicious asset allocations increasing our exposure to fixed-income instruments and currencies on emerging markets.
In 2007, we aim to continue to improve our absolute return processes and market analysis filters.
We also plan to enrich our range of bond issues by adding an SRI product.
Expertise
Evaluation of fixed-income markets
Evaluation of currency markets
Analysis of risk/reward profiles
Value-at-Risk approach
Absolute return investment approach
Evaluation of currency markets
Analysis of risk/reward profiles
Value-at-Risk approach
Absolute return investment approach
Information
Head : Hervé Goigoux-Becker
Management team : 6 people
Assets under management : € 2 Bn
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