First multi-asset income fund on emerging markets

September 29, 2016

Parvest Multi-Asset Income Emerging is a sub-fund of Parvest UCITS V SICAV, an open-ended investment company incorporated under Luxembourg law. The fund has been launched in response to demand from clients who are looking for alternative sources of income and wish to increase their emerging market exposure in line with emerging markets’ growing share of global economic output.

Parvest Multi-Asset Income Emerging is managed using the team’s top-down, macro-based fundamental active asset allocation process, combined with bottom-up active security selection at the asset class level, based on extensive knowledge and strong presence in emerging markets.  It aims to target stable and regular income, in line with the other income products managed by the Multi Asset Solutions team, by dynamically allocating across emerging market asset classes and regions.  Exposure will be to the main emerging market asset classes of equities, local sovereign debt, external sovereign debt, corporate debt, currencies and commodities.  Weightings to equities and fixed income can vary significantly, with both ranging between 0% and 80% of the overall portfolio.

Parvest Multi-Asset Income Emerging is managed by BNP Paribas Investment Partners’ Multi- Asset Solutions team and builds on the team’s successful track record in managing multi-asset, income-generating funds, together with BNP Paribas Investment Partners’ long-standing emerging markets expertise and extensive local presence.

The Multi-Asset Solutions team has been managing income portfolios for over 10 years and consists of more than 50 investment professionals focused entirely on asset allocation, who manage more than EUR70 billion (as at 30 June 2016).  With an extensive emerging markets footprint that began in 1992, BNP Paribas Investment Partners has built a presence in 16 locations, with more than 300 investment professionals managing assets of EUR64.7billion, as at 30 June 2016.

Colin Graham, CIO of Multi Asset Solutions at BNP Paribas Investment Partners, comments:

“In the current environment of sustained low interest rates and negative government bond yields, income is an increasingly scarce commodity and emerging markets can offer attractive higher-yielding investment opportunities.  Market dispersion has risen of late, meaning that not all emerging markets are equal.  The emerging markets universe consists of multiple asset classes, each with different risk and return profiles and different behaviours, depending on the economic cycle.  By combining our established multi-asset income capabilities with the first-hand knowledge and understanding of emerging markets that our strong local presence gives us, we are able to identify what we consider to be the most attractive income opportunities from across these asset classes in order to meet the needs of our clients.”

Key fund information

Fund name Parvest Multi-Asset Income Emerging
Launch date 25/4/16
Legal structure Sub-fund of Parvest UCITS V SICAV registered under Luxembourg law
Share classes Institutional, Classic
Delegated manager BNP Paribas Investment Partners UK
Management company BNP Paribas Investment Partners Luxembourg
Base currency US dollar
Domicile Luxembourg
Risk rating – on a scale of 1 (lower risk) to 7 (higher risk) 5 (The higher the risk, the longer the recommended investment horizon.)
Max management fee Institutional: 0.60% Classic: 1.25%
Max subscription fee Institutional: none, Classic: 3%
Redemption fee None
ISIN codes Classic-Capitalisation (LU1270633115) Classic-Distribution (LU1270633388) Classic MD (LU1270633545) Classic HKD MD (LU1270634519) Classic SGD MD (LU1270635672) Institutional (LU1270636217)
Custodian BNP Paribas Securities Services Luxembourg
Pricing frequency Daily

The value of investments and the income from them may fall as well as rise and it is possible that investors will not recover their initial investment.

Investment in emerging markets, or in specialised or restricted sectors, is likely to be subject to higher than average volatility due to a high degree of concentration, greater uncertainty because less information is available, lower levels of liquidity or greater sensitivity to changes in market conditions, or social, political and economic conditions.

Some emerging markets offer less security than the majority of international developed markets.  For this reason, portfolio transactions on behalf of funds invested in emerging markets may carry greater risk.

Past performance or achievement is not indicative of current or future performance.

Sarah Marteleur

BNP Paribas Investment Partners

About BNP Paribas Investment Partners

BNP Paribas Investment Partners is the BNP Paribas Group’s asset management specialist.  BNP Paribas Investment Partners offers the full range of asset management services to both institutional and private investors around the world.  BNP Paribas Investment Partners has more than 3,000 employees in 35 countries, including more than 600 investment professionals, and manages assets totalling EUR 532 billion (source: BNP Paribas Investment Partners, as at 30 June 2016, assets under management and advisory). For more information, please see