Azimut launches first Ucits hybrid bonds fund
Azimut Holding has launched AZ Fund Hybrid Bonds, its first product investing entirely in hybrid bonds.
The fund is the first Ucits IV-compliant hybrid bonds fund in Europe which invests 100% of its assets in this kind of bonds. The fund’s financial duration will be of four and half years, the firm said.
“The diversification in terms of issuer, sector and geographical area offers subscribers a portfolio with an optimal risk/return profile,” Azimut said.
The fund manager Stefano Mach said: “Hybrid bonds are a funding source which is in between equities and traditional bonds in terms of investing costs.
“At present, several issuers prefer getting funding through hybrid bonds, not only because it improves credit structure, but also as it does not dilute the value for shareholders and it accounts for only 50% as debt.”
AZ Fund Hybrid Bonds is aimed at HNWI and has a minimum entry fee of €25,000.