BNP Paribas Asset Management India Pvt Ltd (Indian arm of BNP Paribas Investment Partners) today announced the launch of BNP Paribas Balanced Fund. The open-ended fund, aimed at investors seeking long-term wealth creation through a combination of equity, arbitrage and debt asset classes, will be available for subscription on 17 March 2017. It would have exposure ranging from 30-60% in equity and equity-related instruments, 5-10% in equity arbitrage and 30-60% in debt, money market instruments and liquid funds. Ultimately, the objective is to improve risk adjusted returns through diversification across these asset classes.
Commenting on the BNP Paribas Balanced Fund, Karthikraj Lakshmanan, Senior Equities Fund Manager, BNP Paribas Mutual Fund said, “We are focussed on long term wealth creation through a diversified portfolio of equity, arbitrage and debt. Our equity portfolio consists fundamentally of robust companies across market cap and sectors; and we aim to have a portfolio construct with a large cap bias and targeted small and mid-caps exposure. The strategy for this fund could be considered by conservative investors seeking limited exposure to equities.”Explaining the fixed income strategy, Mr, Lakshmanan added that the team actively manages the debt portion of the portfolio with a view to generate reasonable income over time. Given prevailing market conditions, the team intends to target the shorter end of the yield curve.
Anand Shah, Deputy Chief Executive Officer and Chief Investment Officer, BNP Paribas Asset Management India Pvt Ltd said, “BNP Paribas Investment Partners India is fully committed to continue innovating to meet our clients’ investment needs. The BNP Paribas Balanced Fund leverages on our in-house ‘Business Management Valuation’ model which helps us identify companies with better earnings growth. Our distinct investment approach ensures that we continue to provide long-term value for investors.”
This will be the fourteenth fund by BNP Paribas Mutual Fund since its foray into Indian market. The total average assets under management (AUM) currently stand at Rs.5977 crores. This is in addition to the US$1.04 billion (as of 28 Feb 2017) managed and advised by the company through its Offshore Advisory & Discretionary Portfolio Management for international investors