Spanish asset manager Gesconsult has announced the launch of two of its funds in the Luxembourg market.
The funds, Gesconsult Renta Fija Flexible and Gesconsult Renta Variable, are already available for sale to all international investors, following the approval of the Luxembourg regulator.
Gesconsult has achieved this “significant step” towards its expansion outside Spain by establishing a master-feeder structure (principal-subordinate) in which the core funds will be Spanish and the subordinate ones will be registered in Luxembourg, it said.
Having outperformed the Ibex-35 in the last few years, Gesconsult Renta Variable invests at least 75% of the funds’ assets in securities listed on the Spanish stock exchange, independently of their capitalisation, and it can also invest up to 10% in foreign companies based in member countries of the OECD.
The fund has a long-term stance, avoiding exposure in emerging markets and seeing opportunities in the medium and small caps equities sectors. As of 31 March 2016, the strategy had AUM of €39m and a return of 35.53% over the last three years.
On the other hand, the Gesconsult Renta Fija Flexible fund consists of a mixed strategy mainly invested in fixed income, which controls risk in volatile market scenarios. It can invest a maximum of 30% in equities, primarily in the eurozone area.
The fund is focused on the medium term. Its exposure to the equity market relies on the market views of the team, and can be completely divested whenever the market circumstances demand it.
As of 31 March, it had AUM of €95m and a return of 10.12% over the last three years.
Gensconsult has decided to launch these vehicles in Luxembourg to meet demand from international investors and has plans to continue launching more of its investment strategies on an international level.
Juan Lladó, chairman of Gesconsult, said that the firm is convinced an important part of its growth will come from international business, now that investors are starting to look towards Spain and Europe.