New Products

Wells Fargo Launches New Fund To Tap European Credit Markets

Harry Keir Hughes, 23 June 2017


The new fund is domiciled in Luxembourg.

Wells Fargo Asset Management has rolled out a new fund for investors seeking more attractive yields relative to government bonds and exposure to diverse returns in the credit markets.

Holding more than €100 million ($112 million) of client assets, the fund is a sub-fund of the Wells Fargo (Lux) Worldwide Fund. It is called EUR Investment Grade Credit Fund.

ECM Asset Management, a team of 22 investment professionals specialising in credit, will act as the funds sub-advisor.

The fund will be managed by Henrietta Pacquement and Alex Temple of ECM. Each have 15 years of industry experience.  

The UCITS-compliant fund, which will focus on higher yielding investment grade bonds, comes as demand for investment grade credit remains strong given low default rates and a supportive economic environment for corporate credit across the Eurozone.

Low government bond yields have driven demand for higher-yielding alternatives, and the fund will concentrate on those with an average investment grade rating that have the best risk-adjusted returns.

“We see extensive opportunities in the current climate of European credit markets and believe ECM’s seasoned team is well-positioned to generate risk-adjusted returns for our investors,” said Pacquement.

She added: “Our pioneering work in the European investment grade space means that we bring significant knowledge and experience to our fund management. Our team follows a proven, transparent and repeatable investment process that has been refined and honed over the last decade of investment-grade portfolio management.”

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes