Credit specialist Cairn Capital has launched a new multi asset credit (MAC) fund in union with Italian investment bank Mediobanca.
The fund, Cairn Mediobanca Strata UCITS Credit fund will be hosted on the Italian bank’s fund platform, Palladium FCP.
The fund will provide daily liquidity and be focused on the long end of the yield curve while investing mainly in European credit. It is actively managed and its hedging strategy aims to reduce volatility. Fundeye recently profiled Rubrics Asset Management’s Global Credit Fund which also sought to reduce volatility while not impacting top line returns.
It will be managed by Faio Vanerio, lead MAC portfolio manager who will report into the firm’s CIO, Andrew Burke.
Each credit asset class, for instance sovereigns and investment grade, is managed by a specialist portfolio management team while the fund as a whole is benchmark agnostic. The portfolio management team focuses on fundamental bottom-up credit selection while a separate allocation committee keeps an eye on the macro picture and is in charge of hedging positions.
The fund will also hedge risks from interest rate duration and currencies, offering exposure to pure European credit spread.
This is not Cairn’s first foray into MAC funds, this new offering will follow a similar investment strategy to its Strata Credit Fund, which only offers monthly liquidity and was launched in January 2015.
The bank’s platform Palladium is domiciled in Luxembourg and is widely distributed through recognised platforms including Allfunds. It is available in both institutional and retail share classes as well as three hard currencies, dollars, euros and Sterling.
Mr Vanerio said in a statement: “We are pleased to launch Strata UCITS as we believe a nimble MAC approach is the most efficient way to deliver risk adjusted returns to investors and is consistent with the broader approach already taken across Cairn Capital’s MAC funds.”
Cairn Capital has assets under management of $4.1 billion as of July 31 2018, this includes collaterised loan obligations managed by Cairn Loan Investments.
