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Candriam launches low-duration bond fund

StopwatchCandriam Investors Group has launched a bond fund aiming for a return of 1% above the Eonia benchmark.

The Candriam Bonds Total Return Defensive fund is a sub-fund within Candriam’s total return strategies and is managed by Damien Martin.

Candriam describes the fund is a “flexible, low duration” global bond fund that aims to achieve a limited volatility over a two-year investment horizon.

“In a challenging fixed income environment that is currently characterised by low yields, rising rates and weaker liquidity, we see Candriam Bonds Total Return Defensive as an effective solution for investors in the short term debt segment,” said Nicolas Forest, global head of fixed income at Candriam and a co-manager of the fund along with Alain Peters.

The fund consists of sovereign bonds, corporate credit and currencies across both developed and emerging markets. It can take long and short exposure to credit and currency markets.

Bonds within the fund have a minimum credit rating of BB and a “maximum ex-ante volatility” of 2%. It also uses derivative strategies to generate alpha or hedge exposure to markets.

Fixed income now accounts for 32% of Brussels-based Candriam’s €108 billion of assets under management.

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