24/09/2012
Dexia AM launches a fundamental govies fund
With the creation of the Luxembourg-registered Dexia Bonds Global Sovereign Quality fund, managed by Nicolas Forest, on 3 September, Dexia Asset Management (Dexia AM, EUR78.7bn in assets as of the end of June) is “perfecting its approach to the management of government bonds,” offering invetors a solution which is intended to avoid distortion of the risk exposure generated by traditional benchmark indices.The new model at Dexia AM, which is also used for the Dexia Bonds Global Sovereign Quality fund (which complies with UCITS IV), uses financial analysis and detailed SRI analysis of the capacity and will of a country to repay its debts, as well as its vulnerability to shocks.Unlike the limited perimeter of traditional indices, Dexia AM is starting with a large universe of 216 countries (based on figures from the World Bank), and applies three filters: a credit quality filter, an interest rate filter, and a currency filter, to construct an optimal portfolio of high quality government bonds.“Our approach has created a much more diversified portfolio, less focused on Europe, including countries which had been virtually ignored by traditional benchmark indices, such as South Korea, Chile, Singapore, Norway and Luxembourg,” the management firm says.CharacteristicsName: Dexia Bonds Global Sovereign QualityShare class/ISIN code/management fee:C Cap: LU0514558518 0.60%C Dis : LU0514558609 0.60%C – EUR – Hedged Cap : LU0809464497 0.60% C – EUR – Hedged Dis : LU0809465031 0.60%I Cap : LU0514558864 0.30%I – EUR – Hedged : LU0809465460 0.30%V Cap : LU0514558948 0.15%N Cap : LU0514558781 1%
