January 15, 2013 / 10:42 AM / 5 years ago

TEXT-Fitch affirms LFP Allocation 7's 'Qualifying' fund quality rating

(The following statement was released by the rating agency)

Jan 15 - Fitch Ratings has affirmed LFP Allocation 7’s ‘Qualifying’ Fund Quality Rating. The fund is managed by La Francaise AM.

The ‘Qualifying’ rating, assigned in January 2012 continues to reflect the ‘Satisfactory’ qualitative assessment of the fund, which has been managed according to the current absolute return process for less than three years. The fund was previously managed under a traditional balanced process.

As per Fitch’s criteria, the ‘Qualifying’ rating is applied to funds that, as determined by the agency, lack a three-year track record (or substantially similar proxy track record) but are judged to be at least ‘Satisfactory’ under Fitch’s fund Qualitative Assessment - until a full track record is established.

LFP Allocation7 is a tactical asset allocation fund with EUR325.46m assets under management as at 31 December 2012. Its “Global Macro” approach seeks to de-correlate from traditional asset classes and beat Euribor1M +350bps. The fund implements directional (long and short) trades on mainstream markets, mainly using futures and listed options.

The fund implements a disciplined investment process based on a proprietary financial scoring method. The portfolio manager interacts closely with other investment professionals in the Asset Allocation department and other investment groups. He also benefits from the support of a six-strong financial engineering team.

La Francaise AM is an asset management group, 85.9% owned by Credit Mutuel Nord Europe (a bank mainly present in northern France with operations in Belgium (BKCP) and Luxembourg (UFPB). The group managed EUR35bn as of June 2012, through La Francaise Real Estate Managers and La Francaise des Placements.

Fitch’s Fund Quality Ratings combine Fitch’s experience in qualitative fund analysis with rankings and performance data from Lipper, a Thomson Reuters company. Fitch’s Fund Quality Ratings offer an independent, forward-looking assessment of a fund’s key performance and risk attributes and consistency of longer-term returns, relative to peer group or benchmarks. The ratings focus on the fund manager’s investment process, key fund performance drivers, risk management, and the quality of the fund’s operational infrastructure. For more information, see www.fitchspotlight.com/FQR.

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