BNP Paribas jumps on to the GTAA train
EUROPE - BNP Paribas has launched its first global tactical asset allocation (GTAA) fund for institutional investors.
The Dublin-listed "BNP Paribas GTAA Alpha Fund" is part of the company's GTAA strategy. The fund has an annualized target return of three month Euribor +8% on a three to five year horizon. Its target volatility is around 10% with the aim of combining "several uncorrelated sources of alpha".
According to Christian Dargnat, BNPP AM's chief investment officer, "returns from the GTAA strategy have a low correlation with returns of traditional and alternative asset classes. The fund invests in a wide range of developed markets and benefits from further diversification through exposure to emerging market equities and commodities."
GTAA is managed by BNPP AM's Asset Allocation team and the approach is the result of a close co-operation between Research & Strategy and Portfolio Management teams, as well as other centres of expertise such as Overlay Asset Management (OAM), BNPP AM's dedicated currency manager.
The team, made up of 25 professionals, manages over €19bn, as of June 30, 2006. In total BNP Paribas has €298bn of assets under management.