03 September 2019
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Andrea Ghidoni, managing director and general manager at Pramerica SGR
Italian asset management firm Pramerica SGR has launched a flexible solution investing mostly in subordinated debt that will focus on the quality of the issuers.
Pramerica Flexible Credit Portfolio was launched on 2 September and will be placed until 4 October. In order to estimate accurately the quality of the debt instruments' issuers, the investment team at Pramerica will combine a top-down and bottom-up approach, the firm explained in a note.
The Fund, which does not have any benchmark, adopts an investment policy based on a 9-year period from the end of the subscription period, during which the Italian manager will adopt a management strategy aimed at obtaining long-term capital growth, assessing consistently the level of risk taken by the portfolio. "At the end of the investment time horizon, the fund's portfolio will be set up exclusively by monetary and bond instruments," added Pramerica.
In the current low interest rates environment, the search for yield will continue to push towards higher risk asset classes. This makes hybrid corporate and financial bonds more interesting even in a scenario that could remain volatile."
Andrea Ghidoni, managing director and general manager of Pramerica SGR, said: "In the current low interest rates environment, the search for yield will continue to push towards higher risk asset classes. This makes hybrid corporate and financial bonds more interesting even in a scenario that could remain volatile.
"Pramerica Flexible Credit Portfolio aims at balancing performance and risk through a portfolio composed of subordinated corporate and financial bonds, issued by solid issuers of systemic importance, as well as by high yield, preferred securities, convertible hybrid bonds and contingent convertible bonds."
