Paris-based asset manager Salamandre AM has launched a flexible bond fund, Salamandre Taux Variable, on 18 October 2017, InvestmentEurope can reveal.
The fund, run by Thomas Giudici, invests in fixed income securities issued in euro of all duration and all levels of subordination, and is not constrained to a carry trade or arbitrage strategy.
Floating and indexed rate notes will be favoured, with the aim of reducing the interest rate risk exposure of the fund. Short duration bonds, interest rate swaps and futures will be also used by the vehicle.
The Salamandre Taux Variable fund seeks to outperform the Euribor 3M capitalised + 100bps over a 12-month rolling period. The portfolio could be exposed up to 200% of its net assets to fixed income securities issued in euro by companies, public and semi-public institutions as well as governments of OECD state members.
The exposure to high yield bonds is capped at 70% of the fund’s assets while that to convertibles and external money market strategies is limited to 10%.
On the credit segment, Salamandre AM currently favours US and European high yield as well as emerging market debt. The Salamandre Taux Variable fund forms the third fixed income strategy of the Parisian boutique which has also launched two funds of funds earlier this year, Sam Allocation Actions and Sam Allocation Patrimoniale.