La Francaise AM, a Paris-based asset manager, is collaborating with S&P Capital IQ, an analytical company, on a global credit fund.
The partners have launched the LFP R2P Global Credit fund, a Luxembourg Sicav.
La Francaise shall construct the portfolio, while both partners will provide analysis, such as macro-economic research and issuer scrutiny.
Patrick Rivière, managing director of La Francaise, says: “For us it is a key product as it is one of the few funds that will be pushed in all countries/client segments that we are covering. The objective is to move quickly to $100 million (€76 million) in size.
“We plan the fund to stay around that size for a few months after that everything will rely on track record and attractiveness of the asset class.”
The fund has significant exposure to the US corporate bond market, La Francaise says, and the portfolio will be comprised of at least 90% investment grade instruments and at most 10% high yield bonds.
The objective is to outperform the Barclays Global Aggregate Corporate Hedged € Index (or $ index).
The fund is the first phase of a partnership announced in June.
Lou Eccleston, president of S&P Capital IQ, says: “In such demanding and changing financial markets, the key to success is in creativity, collaboration and innovation.”
La Francaise has €5.4 billion in assets under management (AUM) in fixed income “open funds” and €36 billion in total AUM.
©2012 funds europe