Deka, the investment offering of German savings banks (Sparkassen) has launched the Deka-MultiFactor Rentenfonds, a bond fund range aimed at institutional investors.
The offering, which includes emerging market corporates, global corporates, global corporates high yield and global government bonds aims to combine a factor-based investment approach with Deka’s quantitative strategies with the aim of achieving higher returns, better Sharpe Ratios and lower drawdown levels.
The strategies focus on bonds which either have a minimum rating of B- or have an issuer with a minimum rating of B-.It also focusses on euro denominated- or currency hedged government bonds.
At a minimum investment of €50.000 respectively, it is predominantly aimed at pension funds and supplementary pension schemes.
The strategies come at an offering premium of 1.50%, annual management fees between 0.30% and 0.40% and an annual lump sum fee of 0.12%.
By Q2 2017, Deka’s quantiative fund management offering had €44bn in assets under management.