French investment firm AltaRocca AM, part of Primonial group, has launched the AltaRocca Hybrid Bonds fund, a strategy focusing on perpetual or long duration hybrid bonds, issued by private companies and excluding financials.
The effective launch of the France-domiciled fund took place on 13 July 2017. The firm had already expertise in the field of hybrid bonds, having invested in it for some of its total return bond funds.
Muriel Blanchier, portfolio manager and founding partner of AltaRocca AM, said that in the current low rate environment, senior investment grade bonds do not provide sufficient compelling returns anymore.
She added that the hybrid bonds’ segment is picking up since 2013 and that it offers a better yield in comparison to senior bonds.
AltaRocca AM was launched in 2013 and managed €650m of assets as of 30 June 2017.