By Joanne Frearson Fiduciary has launched a European High Yield Bond Fund and has applied to the Ce...
By Joanne Frearson
Fiduciary has launched a European High Yield Bond Fund and has applied to the Central Bank of Ireland to launch a Swiss Equity Fund.
The Dublin-based European High Yield Bond Fund invests in sub-investment grade corporate bonds issued in various European currencies.
Fiduciary's bond holdings are diversified across a number of sectors and countries and include those rated below BBB by Standard & Poor's or Baa3 by Moody's.
The fund is permitted to invest up to 30% of its net asset value in securities from non-European countries issued in either US dollars or euros in order to achieve satisfactory sector diversification.
Returns are expected to exceed those currently available from investing in European investment-grade corporate bonds.
To ensure sufficient liquidity, the euro-denominated fund will invest only in securities with minimum issue sizes of e50m, £50m or $100m.
The benchmark for the fund is the Merrill Lynch European High Yield Bond Index.
Investment strategy for the fund is a mixture of top-down and bottom-up investment approaches.
The strategy will focus on a macroeconomic analysis of European economies, concentrating on markets and currencies. Fiduciary will also conduct a detailed credit analysis of individual companies and their securities.
The European High Yield Bond Fund will be marketed mainly to institutional clients and discretionary portfolio managers. However, intermediaries can invest on behalf of individual clients.
The minimum investment is e1.5m for Class A shares and e1,500 for Class B shares.
Initial annual yield on the portfolio will be at least 10.5% and Class B shares will pay a monthly dividend.
The second new fund that Fiduciary hopes to launch is the Swiss Equity Fund.
This is a socially responsible, diversified growth equity fund seeking long-term capital appreciation through investments in small and medium-capitalisation Swiss companies operating in industrial and service sectors.
The fund will be denominated in Swiss francs and the investment adviser for the fund is Geneva-based Banque Fiduciary Trust.
The fund will invest only in companies that fulfill the following criteria: a socially responsible management philosophy, strong innovation, earnings growth potential, good market liquidity, providing value-added products or services in Switzerland and good contact between company and analysts.
The portfolio will consist of 20 to 25 stocks, all of which will be equally weighted in the portfolio from the outset.
The benchmark for the fund is the SPI SMC (Small/Mid Cap) Index.
There will be two share classes. The minimum investment on Class A shares is SFr10m and SFr2,000 for Class B shares. The fund is aimed at both private and institutional investors. Both funds form part of the Fiduciary Trust Global Funds umbrella.
The funds are Dublin-based Ucits and have been registered in the UK, Germany, Switzerland, Sweden, Hong Kong and France.
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