Oddo AM launches HY target maturity bond fund

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Oddo Asset Management is strengthening its product offering in the target maturity bond market with the launch of a new fund.

Primarily focused on the international high yield market, the Oddo Haut Rendement Monde 2018 is designed to invest primarily in the European bond market but the French company also stressed up to 50% can be invested outside of this region.

Setting out its plans further, Oddo said it intends to use the fund to further its presence in the emerging market debt markets and bolster its existing range of target-to-date bond funds.

The new fund will primarily invest in bonds which are rated below BBB- or are unrated. Risk diversification will be achieved through a wide dispersion of bond positions.

In launching the fund, Oddo said: ‘This fund reflects Oddo AM’s ambition to develop fixed-income expertise in emerging countries by drawing on its experience as a pioneer in the management of target maturity bond funds.’

It will be run by a team comprised of former Citywire AA-rated manager Xavier Hoche (pictured), alongside Muriel Blanchier and Laurent Denize. They will be supported by four credit analysts.

This marks the second target-to-date bond fund launched for Hoche over the past 12 months. In May 2012, Oddo launched the Oddo Haut Rendement 2017 fund, which targets both corporate and convertible high yield bonds.

Oddo said the fund will also make use of leverage, with 50% of the portfolio’s net asset value being reinvested into investment grade European sovereign bonds. This leverage will be achieved through lending securities or borrowing cash.