Societe Generale hones onshore fund ranges

Societe Generale Asset Management (SGAM) consolidated its onshore gilt and corporate bond fund ranges into single portfolios at the end of November.

The firm also created the SG Continental Europe equity fund by merging its Europe and European Special Opportunities portfolios.

Within the fixed income range, SGAM blended its Index Linked, Long Dated Gilt and Sterling Bond funds to form SG Gilt.

The firm also merged its Long Dated Corporate Bond and Sterling Corporate Bond funds, to create SG Corporate Bond.

Mik Bates, the head of marketing at SGAM, says the combined funds have greater flexibility, including the ability to use derivatives under Ucits III.

“The Index Linked and Long Dated Gilt funds were limited to certain parts of the market,” says Bates. “We now have one gilt fund, which can invest wherever the manager sees fit.”

Bates says the mergers were also driven by a need to tidy up SGAM’s “messy” bond range, following the addition of SG Core Plus Sterling Bond and SG Total Return Bond last May.

The funds, which have grown to £35m and GBP 8m respectively, were Ucits III-enabled at launch. Lorenzo Gallenga and Gareth Isaac, who manage the portfolios from Paris, also run SG Gilt.

SG Corporate Bond is managed by Grégoire Pesques, SGAM’s head of credit, with support from Marie-Suzanne Mazelier.

“The mergers mean we have a core gilt fund, a core corporate bond fund, a high alpha fund, an absolute return fund and an international fund [SG International Bond],” says Bates.

The amalgamation of Europe and European Special Opportunities was a logical move says Bates, after the portfolios became closely aligned.

Craig Harper has run both funds for the past two years, backed up by Matthew Robertson.

Bates says the Europe fund, which had below £30m in assets, mainly consisted of internal money and the merger did not require shareholder approval.

The mergers follow a similar consolidation of the firm’s British equity range. As Fund Strategy reported on September 1, SGAM amalgamated its UK Concentrated Core and UK Growth portfolios, as well as its UK 350 and UK Specialist 350 funds.