Banque de Luxembourg Investments has proceeded to a double fund merger on 28 March 2018.
The board of the BL Sicav has decided to merge the BL-Optinvest (Euro) fund into the BL-Global Bond Opportunities fund while the BL-Bond Dollar fund has absorbed the BL-Short Term Dollar.
The operation aims to rationalise the range of investment strategies offered by the Sicav, according to a note to shareholders seen by InvestmentEurope.
The BL-Optinvest (Euro) was invested in shares, fixed- or variable-interest rate bonds and money market instruments with up to 50% of its net assets invested through Ucits and other Ucis. The BL-Global Bond Opportunities, which absorbed it, has two-thirds of its net assets invested in fixed or variable interest rate bonds globally and in an unconstrained way, at the exception of a 25% minimum investment in investment grade bonds.
The BL-Global Bond Opportunities fund had €363.4m of assets under management as of 4 April 2018
The BL-Short Term Dollar was invested in debt securities whose maturity does not exceed 12 months and primarily issued in dollar, while the investment strategy of its absorbing fund, BL-Bond Dollar, exposes at least two-thirds of its net assets to fixed- or variable-interest bonds issued by entities in industrialised or emerging countries.
At least 75% of the portfolio shall be invested in issues denominated in US dollars and rated “investment grade” by Standard & Poor’s or equivalent. In addition, it may invest up to 25% of its net assets in convertible bonds, bonds with warrants on transferable securities, indexed bonds and, more generally, any representative transferable security forming part of a bond issue.
The BL-Bond Dollar fund tallied €197.3m in assets as of 4 April 2018.
Another sub-fund of the BL Sicav, BL-Short Term Euro, has been entirely reshuffled and rebranded as BL-Corporate Bond Opportunities. It now invests at least two-thirds of its net assets in fixed or variable rate securities, with a minimal 60% exposure to investment grade bonds.
Some €91.1m of assets were managed in the fund.