MIM are pleased to announce the intention to launch a fixed income relative value UCITs fund that will provide investors with an active convexity profile. The fund will benefit from the expertise and experience of MIM’s investment team and the proprietary quantitative systems and risk engines that have been developed by MIM since 2007.
Speaking about the new product, Bruno Usai, CIO said “We see significant opportunity to provide a fixed-income and FX product in the UCITs space which will have a portfolio construction that provides an active convexity profile, which means that the fund will retain a minimum level of portfolio protection against large market movements to produce higher risk-adjusted returns when volatility in the Fixed Income and Interest Rate markets increases”.
“The initiative has been instigated in conjunction with one of our institutional clients, but we see the potential to attract substantial interest also from new investors that have preference for UCITS - compliant funds. We also believe now is an favourable time in the market to launch this strategy as foreign exchange and interest market volatility has picked up in recent months”.
“Originally we had intended to launch this offering before year end, but our chosen Irish-platform provider, a top tier investment bank, has unexpectedly put their platform on hold. We are in the final stages of selecting another platform, and expect to launch the Fund in Q1 2016”.
Further updates about the new product will be made available, once further progress has been made.