Wells Fargo Asset Management has launched an investment grade credit fund that is a sub-fund to its Wells Fargo (Lux) Worldwide Fund, and which will use ECM Asset Management as its sub-adviser.
The Ucits compliant EUR Investment Grade Credit Fund is launching with over €100m of assets and is available to both institutional and retail investors. The portfolio targets European investment grade credit through an active strategy using fundamental credit research together with top-down allocation. Demand for this asset class remains strong, Wells Fargo AM noted, because of low default rates and a supportive economic environment for corporate credit across the eurozone.
Low government bond yields are driving investors towards higher yielding assets. The fund aims to generate higher returns than those available from the government bond market. Wells Fargo AM’s 30-strong global credit research platform will lend support to the new fund. The focus on investment grade credit in the eurozone gives scope for investment opportunities that the manager believes will appear following a phasing out of the current monetary stimulus.
Portfolio managers on the fund will be Henrietta Pacquement and Alex Temple of ECM Asset Management. Pacquement, who is head of Investment Grade Credit at ECM, said: “We see extensive opportunities in the current climate of European credit markets and believe ECM’s seasoned team is well-positioned to generate risk-adjusted returns for our investors. Our pioneering work in the European investment grade space means that we bring significant knowledge and experience to our fund management. Our team follows a proven, transparent and repeatable investment process that has been refined and honed over the last decade of investment-grade portfolio management.”
Domiciled in Luxembourg, the fund is available there as well as in France, Spain, Switzerland, Austria, Finland, Sweden, Norway, Netherlands, Germany, Ireland, Italy and the UK.