10 November 2015
KBL European Private Bankers (KBL epb) announced today the launch of its Richelieu Fd 2020 US High Yield bond fund.
This actively managed, US dollar-denominated fund has a five-year fixed maturity, concluding in 2020, with anticipated returns reflecting an assumed buy-and-hold strategy until maturity.
The fund seeks to capitalize on the long-term attractiveness of the high-yield bond market – particularly in the United States – providing exposure to companies active in a wide range of sectors, primarily but not exclusively based in that country.
“We see significant appeal in investing in US high-yield debt as part of a broader portfolio diversification strategy, whether to diversify the bond segment of the portfolio or as an alternative to US equities,” said Kristel Cools, Group Head of Asset Management, KBL epb.
“Over the past 12 months, the rate of new US dollar-denominated high-yield bond issuance has been four times greater than that of new high-yield issues denominated in euros, creating a higher degree of liquidity in the US market,” she said.
“That liquidity – along with large spreads and a neutral currency call – is generating increased confidence in the stability of the US high-yield debt market.”
The Richelieu Fd 2020 US High Yield fund is managed by Lionel Balle and Amélie D'Agostini, Luxembourg-based fund managers at KBL epb, who oversee a bond selection process based on both qualitative and value screening.
KBL epb currently offers more than 65 proprietary funds to its clients and distribution partners across Europe. Such funds are marketed under the brand name “Richelieu Investment Funds.”