BNP Paribas Asset Management has launched Parvest US Value, an equity fund invested in large cap US stocks, thereby developing upon and enhancing its range of US equity products. Parvest US Value combines a contrarian value investment style with a bottom-up, research intensive process resulting in a high conviction portfolio.
By focusing on momentarily underpriced stocks, the investment policy of Parvest US Value is suitable for uncertain market conditions.
The benchmark index of Parvest US Value will be the Standard & Poor's 500 index.
Parvest US Value's investment process will feature:
· a quantitative screening and fundamental analysis of the largest 500 US stocks;
· a selection of stocks that are underpriced, notably in terms of Price to Earnings (P/E) ratio, and have good prospects for improvement in earnings;
· a concentrated portfolio comprised of between 30-40 holdings.
The management of this fund has been delegated to Pzena Investment Management LLC, a US investment management company specialised in value investing, with some 8.5 billion dollars in assets under management as of the end of September 2004.
The fund will be managed by a team of 12 analyst/managers, whose three senior members - Richard Pzena, John Goetz and Rama Krishna – will have veto authority on stock selection and portfolio construction.
Parvest US Value:
ISIN code numbers: LU0206728387 (Classic Cap)
LU0206728544 (Classic Hedged)