Announcement of the launch of “Long-term U.S. and U.K. Government Bond Income Fund (Interest-Rate-Hike Risk Management Type)), April 2015“
April 28, 2015
On April 28, 2015, Bayview Asset Management Co., Ltd., (BVAM) launched its Long-term U.S. and U.K. Government Bond Income Fund (Interest-Rate-Hike Risk Management Type), April 2015, which invests mainly in U.S. and U.K. government bonds and trades U.S. and European bond futures, U.S. and European stock index futures, and currency futures (dollar/yen, euro/dollar) as its second fund following Long-term U.S. Government Bond Income Fund (Interest-Rate-Hike Risk Management Type) (launched on November 26, 2014), which invests mainly in U.S. government bonds and trades U.S. bond futures, U.S. stock index futures, and currency futures (dollar/yen).
The new fund deploys the ladder portfolio (portfolio in which approximately the same amount of money is invested in securities with different maturity dates), which invests in U.S. government bonds (with current maturity of approximately five to ten years) and U.K. government bonds (with current maturity of approximately eight to thirteen years) (hedged in principle), and thereby achieves attractive yen-based income gains compared with interest rate levels in Japan. In addition, in accordance with BVAM’s proprietary quantitative model, which is used in the Active Asset Allocation Fund series managed by BVAM, the fund aims to reduce the risks of interest rate hikes in the U.S. and Europe by flexibly adjusting the allocation between U.S. and European bond futures, U.S. and European stock index futures, and currency futures (dollar/yen, euro/dollar).
The model referred to above has been developed in conjunction with a financial institution as a seed investor in order to allocate assets to equity, bonds, etc., in a rational manner by maintaining an accurate grasp of the structural characteristics of financial markets. Once again, in the same manner as last time, while we both made the best use of our many years of practical investment experience, the new fund has been created as a new utilization method. Aiming to gain steady income gains and stabilize the net asset value of the fund, BVAM believes that the new fund is the most appropriate investment product for investors who wish to enjoy periodic income as well as reduce the price fluctuation risk of bonds. BVAM intends to launch similar funds going forward.
BVAM strives to provide investment products that meet its clients’ expectations.
For inquiries, please contact the Investment Management Planning Department at 813-5210-3341.