Financial Standard- Two of BNP Paribas’ re-opened fixed income funds have been spared the guillotine and emerged with minor scratches after the company announced official valuations yesterday.
BNP’s funds defied expectations by returning smaller than expected losses, with the Euribor fund losing 0.97 per cent and the ABS Eonia down 1.78 per cent. A previous BNP Paribas release showed expected losses of between 2 per cent and 3 per cent for the Euribor fund, and 2.5 per cent to 3.5 per cent for the Eonia fund.
Results for the Parvest Dynamic ABS fund will be released this evening Australian time. Previous loss expectations varied between 4 and 5 per cent.
A BNP spokesperson said the assets owned, mostly AAA and AA rated, did not suffer any default in payments or downgrading, which explained the result.
“This confirmed that BNP Paribas Investment Partners’ decision was both totally transparent and protected investors’ interests,†the spokesperson said.
