BNP Paribas Asset Management: management of assets investment strategy SICAV equity bonds structured diversified money market ISIN Bloomberg parvest bnp paribas > Money markets

Our investment philosophy is based on 2 principles:

That macroeconomic, quantitative and credit analysis and research are essential for portfolio management and selection of issuers.

That defining precise investment constraints (such as type of instrument, duration bracket and rating of issuers) and strict ongoing risk monitoring (carried out by management and the risk control department) can guarantee optimum security for investors.

We believe that an approach combining in-depth management of issuers with interest-rate exposure is the best way to take advantage of short-term opportunities and inefficiencies and thereby outperform the main money market indices.

The investment process combines a top-down approach, which is based on macroeconomic fundamentals for each zone or country, with a bottom-up approach focused on intrinsic stock qualities. In the context of a dynamic short term investment approach, we also benefit from interaction with several specialised teams within BNPP AM (e.g. non-investment grade loans, convertible bonds).

The BNPP AM Short Term investment team is responsible for managing regular and dynamic short term portfolios. It comprises 13 portfolio managers, specialised by type of instrument and management style, who have on average 15 years experience in the market. The team has earned a leading position in the cash management market in the Eurozone with more than € 60 billion in funds under management at end March 2007.

A number of short-term investment solutions are available covering a variety of maturities and with a range of performance objectives.

Our product offering, extremely well-positioned from a competitive standpoint, can be broken down as follows:

•  AAA rated liquid funds (EUR, USD, GBP) 
Rating funds illustrates their capacity to maintain capital and provide a high level of liquidity, thanks in particular to very low exposure to interest-rate and credit risk.

•  Regular money market funds (EUR, USD, GBP, CHF) 
These funds provide a response to investment needs for periods of between 1 day and 3 months or more. They offer yields that are highly correlated with the main money market indices, or even slightly higher depending on exposure to credit markets (investment-grade category only) and interest rates.

•  Dynamic short terms funds (EUR)
These funds, with a recommended investment horizon of between 6 months and 1 year, are designed to outperform their benchmark by position-taking in bond markets, currency or credit markets and diversified investments (10% maximum) in other asset classes.