Since this decision was announced and faced with the difficulty in obtaining market prices on certain sectors, BNP Paribas Investment Partners has developed a pricing mechanism which would allow subscriptions and redemptions to resume, as it promised since the outset.
This mechanism combines several valuation methods, in particular using pertinent market indices when they are available and taking into account illiquidity factors by issuer category.
Given this new mechanism and the prevailing market environment for these financial instruments, BNP Paribas Investment Partners considers that conditions are in place to resume the net asset value (NAV) calculation as well as subscriptions and redemptions for the three funds as follows:
- As of 28 August 2007 at 13.00 (Paris time) for BNP Paribas ABS Euribor and BNP Paribas ABS Eonia
- As of 30 August 2007 at 15.00 (Luxembourg time) for Parvest Dynamic ABS
Based on 7 August net asset values, the drop in the NAV for BNP Paribas ABS Euribor should range between 2% and 3%, for BNP Paribas ABS Eonia between 2.5% and 3.5%, and for Parvest Dynamic ABS between 4% and 5%. These estimates are provided for indicative purposes only and reflect the market conditions prevailing on the date of this press release. They could still fluctuate until the funds reopen.
BNP Paribas Investment Partners would like to emphasise once again that these three funds are on average over 90% invested in securities rated AAA and AA which have not been subject to downgrading or defaults during recent months, and their valuations are currently depressed due to the illiquidity of the market.
The prevailing context presents an opportunity for new investors to benefit from discounted asset prices by subscribing to these funds and for current shareholders to remain invested.
BNP Paribas Investment Partners brings together the full pallet of asset management expertise of the BNP Paribas group.
Through a unique platform that offers immediate and simplified access to a broad range of specialist Partner companies BNP Paribas Investment Partners has become a leader among the multi-specialist asset managers. At end 30 June 2007, assets under management were euro 356 billion*, nearly half of which managed for institutional clients.
With 2,000 professionals servicing clients in over 69 countries, the network of Partners provides clients with the most advanced and dedicated expertise in asset management today, blending excellence in client service with innovative solutions that can highlight or combine specialities.
* assets under advisory included