Lord Abbett launches fixed income Ucits for European investors
US manager Lord Abbett is set to offer European investors access to fixed income strategies via Ucits vehicles.
Lord Abbett, the privately held asset manager that has been serving US investors since 1929, has launched ‘Passport Portfolios’ which it says will allow non-US institutions and retail investors to access a number of its existing fixed income strategies through Ucits funds.
The strategies include Lord Abbett Short Duration Income Fund – managed by the same investment team, and with the same investment process, as the US-registered Lord Abbett Short Duration Income Fund – Lord Abbett High Yield Fund – managed on a similar basis as the US-registered Lord Abbett High Yield Fund – and Lord Abbett Strategic Income Fund – managed on a similar basis as the US-registered Lord Abbett Income Fund.
A spokesperson confirmed that the Ucits funds will be marketed first in the UK, Ireland, Netherlands, Denmark, Finland and Norway, with the intention to register in other European markets.
In regards to retail investors, the intention is to target discretionary wealth managers and private banks serving the European high net worth market.
The portfolios are listed on the Irish Stock Exchange, and distribution will be supported across Europe by Arbour Partners. The move to offer Ucits versions of its existing strategies is part of Lord Abbett’s strategic decision to build itself up as a global investment manager.
Stephen Hillebrecht, fixed income product strategist at Lord Abbett, said: “We continue to see demand for yield-based strategies that also limit interest rate exposure, and we feel that our investment-led, investor-focused approach will be well-received. The US corporate and asset-backed fixed income market remains one of the deepest, broadest and most liquid fixed income securities markets in the world and continues to provide income-producing opportunities.”
Lord Abbett has about $139bn in assets under management, with about $92bn in fixed income strategies, including approximately $1.4bn for which Lord Abbett provides investment models to managed account sponsors.