EFG has launched a credit-focused fund and an international bond fund from its Dublin-based investment company New Capital.
For the New Capital Total Return Bond Fund, EFG has teamed up with Partners Asset Management.
The portfolio will invest in credits in BBB, AA and junk bonds.
The New Capital Total Return Bond fund aims to seek consistent returns throughout the economic cycle. The fund can invest in all fixed income asset classes, giving managers the ability to exploit their non-synchronous nature.
Partners were chosen due to their expertise in this area. New Capital will manage the fund and Partners will select the bonds in the portfolio.
The fund will be co-managed by Paul Brain, chief investment officer at Partners and Mozamil Afzal, head of investment management at EFG.
Partners will use a relative value process to select credits., whereas the New Capital International Bond Fund is an existing portfolio of EFG. However, its domicile has been transferred from Luxembourg to Dublin.
Afzal said: 'The International Bond Fund was transferred from Luxembourg to Dublin because we wanted a more independent platform for the portfolio. When the fund was run from Luxembourg we were responsible for all management such as administration, and custodian. We wanted a segregated custodian and administration service as external parties would not buy the portfolio if it was all based in-house.'
The International Bond Fund invests in government and G7 bonds and is principally focused on AAA and AA-rated bonds.
Bonds are chosen using a top-down strategy. This includes looking at such factors as interest rates and inflation. The fund manager is Mozamil Afzal.
Minimum investment for both funds is $5,000. It is also available in sterling and euros.
Annual management fees for the Total Return Bond fund is 1% and for the International Bond fund is 0.85%. The two products will be sold through intermediaries.
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