Download BNP Paribas Wealth Management - Association of Financial Mutuals

Specialist Portfolio Management – Fixed Income
Presentation by Heinz Schmid to Association of Financial Mutuals
Heinz Schmid
Head of Fixed Income & Senior Investment Manager
18th October 2010
BNP Paribas Wealth Management
Comparative Returns over 10 years of Equities, Corporate bonds, UK Government Gilts
BNP Paribas Wealth Management
Index-Linked Gilts 2047 – Price Movements
BNP Paribas Wealth Management
Different strategies for different conditions
Best Performance
Interest rates 
Inflation
Investment grade
corporate bonds
Worst Performance
Gilts
Strong economy
Interest rates 
Deflation
Recession
Gilts
Low investment
grade credit
BNP Paribas Wealth Management
Specimen Investment Matrix
Asset Type
Neutral
Minimum
Maximum
Fixed Interest Investment
Under 2 year bonds and deposits
61
6
50
3
100
10
Duration
9.5
6.5
12.5
Credit Quality
Supra Nationals and Gilts:
No Restrictions
Corporate AAA:
Each one no more than 5% of total investment. Maximum duration 9 years.
Corporate AA:
Each one no more than 5% of fixed interest exposure. Maximum duration 9 years.
Corporate A:
Each one no more than 5% of fixed interest exposure. Maximum duration 7 years.
Corporate BBB:
Each one no more than 2.5% of fixed interest exposure. Maximum duration 6 years.
Sub Investment Grade:
No more than 1% of fixed income exposure. Maximum duration 5 years.
BNP Paribas Wealth Management - Summary
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BNP Paribas Wealth Management has scale and experience in active fund management. We offer
proactive and tailored fund management, and adopt a structured and disciplined approach in
formulating our independent investment policy and advice.
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At BNP Paribas Private Investment Management we manage segregated portfolios for a range of
clients including: Friendly Societies; insurance companies; pension funds; corporate clients; charities;
trustees and private clients.
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We would be delighted to provide an independent review of your existing portfolio and discuss your
requirements to preserve and build wealth for the benefit of your Members.
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BNP Paribas Wealth Management is an Associate Member of the Association of Financial Mutuals
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Contact: Heinz Schmid
BNP Paribas Wealth Management
Tel: +44 (0)20 7369 4869
Fax: +44 (0)20 7369 4821
[email protected]
www.uk-wealthmanagement.bnpparibas.com
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BNP Paribas Private Investment Management Limited is a Member of the London Stock Exchange and authorised and regulated by the Financial
Services Authority. Registered in England and Wales at Companies House Cardiff: Registration Number: 2123174 with registered office at 5
Aldermanbury Square, London, EC2V 7BP. FSA Reference No: 140948.
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The value of investments and the income from them varies and you may realise less than the sum invested.