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Wells Fargo Launches New Fund To Tap European Credit Markets

Harry Keir Hughes, 23 June 2017

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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.”

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