Candriam is renaming and repositioning the Candriam Bonds Total Return Fund as the Candriam Bonds Global Alpha Fund, subject to shareholder approval later today.
The asset manager says the repositioning will evolve the fund into a more flexible alternative global macro fixed income strategy, combining active directional long and short positions primarily across global interest-rate and sovereign credit markets. This will be complemented by relative value strategies.
The investment team responsible for the strategy remains unchanged. Jamie Niven, senior fixed income fund manager, will continue to be the lead manager of the fund, with Yohanne Levy, fixed income fund manager. Bob Maes, senior global fund manager – global bonds, and Philippe Dehoux, head of global bonds, remain as co-managers.
The asset manager says the strategy is designed for an environment in which divergent monetary policies, greater dispersion across interest-rate markets and recurring valuation dislocations are creating opportunities on both the long and short sides of the market.
The fund will seek to outperform its benchmark – €STR (Euro Short Term Rate) Capitalized – through an unconstrained investment approach with an average ex-ante volatility target of below 5% under normal market conditions, while maintaining a low correlation to the overall direction of traditional, fixed income markets.
The fund will invest primarily in investment grade fixed income securities issued by sovereign, quasi-sovereign and corporate issuers globally while making use of derivative instruments, including interest rate, credit and foreign exchange derivatives, to implement investment views, manage risk and enhance portfolio efficiency.
Nicolas Jullien, global head of fixed income and head of high yield & credit arbitrage at Candriam, said: “Today’s fixed income markets present a broader opportunity set, driven by greater interest rate dispersion, divergent monetary policies and valuation differences across regions and sectors. In this environment, investors need strategies that can adapt quickly to changing market conditions and capture opportunities on both sides of the market. Candriam Bonds Global Alpha strategy is designed to do just that.”
The Candriam Bonds Global Alpha Fund is registered for distribution in Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxemburg, the Netherlands, Portugal, Spain, Sweden, Switzerland and the UK.