Aegon Asset Management has launched the Aegon Financial Credit Opportunities fund.
It will be managed by investment manager Alex Pelteshki and head of UK fixed income Iain Buckle, supported by four credit analysts.
The strategy aims to provide a steady income with the potential for capital growth by investing in global banks and financial institutions.
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It will have a concentrated portfolio of around 40-100 securities and is expected to have relatively low sensitivity to interest rate risk. At least 65% of the portfolio will be invested in contingent convertibles (CoCos).
Buckle said: “As we build on our fixed income expertise and offering, creating a dedicated strategy designed to provide investors with targeted exposure to financial credits, a rapidly evolving and increasingly important segment of the market, was a natural next step.”
Pelteshki added: “With differentiated risk characteristics and income potential, capital securities can represent a compelling opportunity, particularly for investors focused on generating income, whatever the market environment.”
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