Spain’s Mutuactivos has launched Mutuafondo Financiacion, a new hedge fund, according to the Spanish trade press.
The fund will refer to the BofA Merrill Lynch BB-B European Currency High Yield Index, and will invest 100% of its portfolio in fixed income, divided into corporate bonds or bonds aimed at the funding of specific projects. A minor part of the fixed income portfolio will invest in deposits and money market instruments.
Bond issuers will be European countries, mainly Spanish, and will include emerging markets countries too. The fund will look at taking a maximum risk of 10%.
The fund aims at building its portfolio within the next year, during which the highest concentration in the same issuer or issue will remain of 65% of total exposure. It will then go down to 25% and to 15% during the third year.