ECM Asset Management unveils Absolute Return Credit Fund
ECM Asset Management Ltd has launched the Absolute Return Credit Fund (ARC) to gain exposure to the deleveraging credit cycle in the present low growth and low interest rate environment.
ARC will target an absolute return of one month Euribor + 4% per annum net of fees in all market conditions, with an emphasis on capital preservation and management of the downside risk. ARC is a Luxembourg-domiciled, UCITS-compliant absolute return fund offering daily liquidity.
The fund will employ directional credit strategies, and its fundamental approach to credit markets enables it to identify systemic and idiosyncratic opportunities. As an active source of return, it will use relative value strategies, including basis trading, pair trading, capital structure relative value and curve trades. The fund’s focus is on European corporate credit, with the flexibility to invest across global credit markets.
As part of ECM Asset Management, ARC will benefit from the firm’s established and disciplined research process, local knowledge and an experienced trading team. The Portfolio Managers of ARC will be Derek Hynes and Ross Pamphilon, who between them have over 35 years experience in financial markets.
“We anticipate a great deal of investor interest in the Absolute Return Credit Fund,” said Derek Hynes, Lead Portfolio Manager at ECM Asset Management. “The present market uncertainty presents an opportunity to capture upside, but with lower volatility along with lower correlation to other risk markets. Investors benefit from diversification as returns are derived from multiple sources.”
ECM Asset Management is owned by Wells Fargo, the fourth-largest US bank with $447 billion in global assets under management.