Assenagon Asset Management has launched Credit Opportunity Plus for institutional and private investors. The fund aims to leverage opportunities in the stock market and achieve a target return of 4.5% per annum. The running costs of the mutual fund amount to 1.40%.
The fund is managed by fund managers Stefan Magerl, Michael Hünseler and Jan Hennig.
The basic portfolio of the mixed fund accounts for at least 60% of the fund volume. In a multi-stage process, around 50 companies are selected, which on the one hand offer a favourable ratio between the credit risk premium and the probability of default. On the other hand, they should have a stable or improving debt service.
The fund opens up additional earnings potential of the issuers in the underlying portfolio on the stock market; if the stock of an issuer is undervalued compared to the bond, call options are used. If the relative attractiveness of debt to equity of an issuer changes, an existing option will be sold, said Michael Hünseler, head of Credit Portfolio Management at Assenagon.