Lyxor Teams With Wells Fargo Asset Management For New Financial Credit Fund

Mar 3 2017 | 12:20am ET

Lyxor Asset Management has launched a new UCITS-compliant credit fund in partnership with Wells Fargo Asset Management that will focus primarily on high-yield fixed income instruments issued by companies in the global financial sector.

The new fund, named the Lyxor/Wells Capital Financial Credit Fund, will have a European focus, according to an article in Citywire. It will invest across the credit capital structure to include senior, subordinated and contingent convertible debt while also hedging currency risk.

The new fund’s strategy will combine fundamental credit research with asset allocation, the article said. By concentrating on higher-yield financial sector issuers, the fund can benefit from stricter regulation, oversight and liquidity requirements while still earning attractive risk-adjusted returns relatively uncorrelated to high yield bonds issued by companies in other sectors. 

The fund will be the eleventh member of Lyxor’s €2.6 billion Alternative UCITS family domiciled in Ireland. It will be sub-advised by ECM Asset Management, a unit of Wells Fargo Asset Management, and is passported for sale in 12 countries. 

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