UK – Foreign & Colonial (F&C) has launched a number of Luxembourg-based equity and bond SICAVs aimed at both the institutional and retail markets.
The new funds include the F&C European High Yield Bond, F&C Global Equity and F&C European Equity.
“ We have seen demand in pooled funds to gain effective exposure to certain asset classes increase in Europe and these funds will compliment our successful growth in segregated mandates from clients in Europe over the past three years,” says Monique Nooy, director of European institutional business at F&C.
The European high yield bond brief - the first fund to be launched - has already pulled in over e60m in assets. The fund targets high-yield corporate bonds issued by companies with stable or improving credit risk from the European Union or OECD member states.
The fund will be denominated in Euro and invest primarily in bonds that have a credit rating of BB, B and CCC or equivalent.
“ We believe that the market turbulence experienced last year has offered a tremendous opportunity to make investments in the European high yield bond market at attractive levels,” says Jeremy Toner, fixed income fund manager. “ Our medium term outlook suggests that European high yield bonds are an attractive investment opportunity to provide higher yields for established bond portfolios,” he concludes.