Algebris Investments launches new Ucits fund

Boutique Algebris Investments has launched its second long-only Ucits fund investing in bonds and stocks globally.

Algebris Income Ucits Fund is the second long-only fund managed by Algebris, after the launch of Financial Credit Ucits Fund.

The fund aims at maximising returns and obtaining the highest revenues according to clients risk profile, Algebris said.

Algebris Financials Income Fund will invest 50% of its portfolio in stocks and 50% in subordinated security bonds, including hybrid capital instruments, preferred stocks and contingent convertible bonds (Coco), both at fixed and variable rate.

The fund, which requires an annual fee of 0.9% on each institutional class, has a total return objective of 8-10%, made up of annual dividend yields between 6 and 7% and return on capital gains of 3%.

The fund has been operative since mid-August and has already posted €60m, Algebris also revealed. It mainly looks at three investment classes: private, institutional and super institutional, starting from €50m. Early investors will benefit from a discounted class with a 0.5% fee, Algebris said.

CEO Davide Serra (pictured) said: “We believe it is a great time to invest in the financials sector. Many markets are coming out of the crisis at the moment and will significantly benefit from the rise of interest rates in the next three to five years.”

For these reasons, as Serra also explained, there is currently the opportunity to reduce bond investments in favour of stocks in portfolio management.



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