BNP Paribas Asset Management (BNPP AM) has unveiled a new absolute return equity strategy as investors increasingly seek products having low correlation with underlying markets.
The vehicle, called Parvest Global Equity Absolute Return Strategy (Parvest GEARS), aims to offer investors positive returns in case of a correction while allowing them to invest in rising markets.
The UCITS-compliant fund will be run by BNPP AM’s global equity team, headed by CIO of global equities Simon Roberts.
The strategy is registered in Luxembourg. The firm will adopt a bottom-up approach to select stocks for the strategy.
“Our experience of managing similar strategies and our ability to demonstrate that we can protect capital and generate alpha in a range of market environments is attractive to investors looking for diversification and to avoid market fluctuations. With the appetite for UCITS-compliant absolute return products continuing to strengthen, the strategy enables a wider range of investors to access our strategy and investment processes,” Roberts stated.