Azimut has launched what is believed to be the first UCITS IV-compliant hybrid bonds funds in Europe. The fund – AZ Fund Hybrid Bonds - will invest 100 per cent of its assets in hybrid bonds and has an investment time horizon of four and a half years, reported investmenteurope.net.
The fund will offer diversification to investors in terms of issuer, sector, and geographic reach to produce a portfolio with an optimal risk/return profile. Stefano Mach, manager of the new fund, was quoted as saying: “Hybrid bonds are a funding source which is in between equities and traditional bonds in terms of investing costs,” adding that several issuers prefer to get funding through these financial instruments not only because it improves credit structure but also because “it does not dilute the value for shareholders and it accounts for only 50 per cent as debt”.
AZ Fund Hybrid Bonds is aimed at HNWI and has a minimum entry fee of €25,000.