Short-term solutions
Ostrum Asset Management offers a comprehensive range of short-term investment solutions, comprising money-market and standard strategies and short-term bond strategies.
These strategies are designed to optimize yield in return for capital risk, while also addressing two key requirements for short-term investors i.e. keeping volatility low and offsetting portfolios’ exposure to interest rate fluctuations. The strategies all integrate the materiality of ESG factors on credit quality, and the majority include funds with the SRI label.
Money-market strategies1 all have the French SRI label, and boast very low volatility and high liquidity as they involve holding very short-maturity securities.
Short-term bond strategies offer stronger yield than money-market strategies in return for higher volatility. Some have the French SRI label.
Short-term bond strategies are designed to offer the best solutions to tackle the challenges facing both corporate treasurers and more long-term investors in a low interest rate environment. We can single out three types of short-term bond strategies:
- Ultra-low duration strategies
These strategies keep duration close to zero, and aim to keep interest rate risk to a minimum.
- Low-duration strategies
These strategies are based on short-term credit with exposure to interest rates of around 2 years. They seek to offer higher yield than euro area sovereign bonds with the same maturity.
- Flexible strategies
Our flexible or absolute performance approach offers responsiveness as we adapt our duration decisions and calibration as well as performance drivers to suit the various market environments.
1 Strategies carry a risk of capital loss and are not guaranteed. Investment in this type of strategy is different from investing in deposits, as it is exposed to the risk that invested capital may fluctuate. Strategies do not rely on external support to guarantee liquidity or stabilize the investment’s value.
62
billion euros in money-market and short-term bond assets managed.
+35
years' experience in fixed-income investment management.*
23
in-house credit analysts
* Ostrum AM was created by the separation of Ostrum AM’s fixed-income and equity investment management operations into a separate subsidiary on October 1, 2018 (registered on the Paris Trade and Companies Register under number 329 450 738, previously Natixis AM).
FIXED-INCOME INVESTMENT LEADER'S EXPERTISE
Our highly experienced experts draw on a wide range of resources
Funds in our short-term solutions range are managed by teams of experts with extensive experience across various market cycles.
Our portfolio management teams have a wide range of resources at their disposal:
- A macroeconomic research team supports them in projecting economic trends and monetary policy developments.
- Portfolio managers can also draw on our independent credit research team that provides worldwide coverage of more than 1,000 issuers. They analyze the impact of ESG factors on the credit quality of issuers.
- A specialized quantitative research team designs and enhances proprietary quantitative models and decision-making tools that are used on a daily basis to manage our funds.
- An ESG Strategy team to decipher regulatory developments and assist managers in achieving their extra-financial objectives.
Risk management at the heart of our investment processes
Ostrum AM’s portfolio management teams and risk department ensure stringent risk monitoring at all levels.
We have developed tailored systems to measure and steer risk, helping minimize volatility and safeguarding high liquidity in our portfolios.
Further reading