Union Investment launches subordinated bond fund

Mixed graph colourUnion Investment has launched its first fund for subordinated bonds, the UniInstitutional Euro Subordinated Bonds.

Its investments have an average rating of at least investment grade (BBB-) and virtually all currency risk is hedged.

The investment universe also comprises interest-bearing securities like corporate bonds and covered bonds, but the exposure to high yield bonds is capped at 20% of the portfolio.

Stefan Sauerschell, the manager, says: "By investing in the bonds of more than 60 issuers in various sectors and regions, the fund mitigates the risks attaching to individual securities."

The fund is domiciled in Luxembourg.

©2014 funds europe