New SRI fund from LBPAM | Photo credits: Shutterstock
La Banque Postale AM markets LBPAM ISR Convertibles Monde (Isin code: FR0014004IW3), fund invested in international convertible bonds with an approach integrating the dimension of sustainable investment. The fund uses the investment principles of LBPAM’s convertible management, namely a fundamental analysis focused on the credit quality of issuers, on the one hand, and the study of medium and long-term growth prospects which guarantees a valuation of the underlying equities, on the other hand. These analyzes are carried out in parallel with those of their good practices in the field of SRI. Ultimately, the fund is actively managed and on a discretionary basis with a defensive profile and a prudent approach to the market from a credit point of view.
Maximum entry fee: 6%; annual management fees: 1.51%.
The notice to invest
Provided of course to negotiate an entry fee of at most 1% (6% is totally confiscatory!), We recommend this fund for three reasons. First of all, convertible bond funds did not shine this year despite the good performance of financial markets. Thus, they gained on average only 1% in Europe and 4% in the world. This asset class has been affected by the rise in interest rates. Valuations have therefore become attractive again and convertibles should benefit from the expected good performance of equities next year with an estimated sensitivity of 40% on the Old Continent. Then, convertible bonds improve the risk / return ratio of a bond portfolio with behavior uncorrelated from other bond asset classes and performance that should be higher. Finally, LBPAM has demonstrated its expertise in convertibles with the LBPAM ISR Convertibles Europe fund, which is among the 10 best European convertible bond funds over 3, 5, 8 and 10 years.