Foreign & Colonial has launched three Luxembourg-based Sicavs: European High Yield Bond, F&C Global ...
Foreign & Colonial has launched three Luxembourg-based Sicavs: European High Yield Bond, F&C Global Equity and F&C European Equity funds.
Available to institutional and retail clients, the European High Yield Bond Fund was launched in September, but has not been actively marketed until now. The fund, which has e60m in assets, targets high-yield corporate bonds issued by firms with stable or improving credit risk from the EU or OECD member states. The fund is denominated in euros and invests primarily in bonds that have a credit rating of BB, B and CCC or equivalent.
Dr Jeremy Toner, a member of the fixed income fund management team at F&C, said: "We believe the market turbulence experienced last year has offered a tremendous opportunity to make investments in the European high yield bond market at attractive levels. Through application of a detailed stock selection process, investors can now take advantage of attractive market prices while minimising the risks certain telecoms firms undoubtedly take."
Management fees for the three funds will be tiered based upon the subscription level. The initial charge on each will be up to 5%, while the annual management charge for the funds will be 1%.
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