Spanish investment boutique Buy & Hold Capital, headquartered in Valencia, has launched its second fixed income fund.
Buy & Hold Deuda FI 's launch stems from the concern shown by some institutional investors about the ongoing low interest rates environment and the possibility of private banking entities charging their clients for liquidity, the company has outlined.
The Fund will present a lower volatility and rotation than the firm's previous fixed income strategy, B&H Renta Fija FI. The volatility reduction will be achieved through the limitation of the fund's duration to a maximum of four years.
In addition to institutional investors, the new Fund is also open to retail clients provided they can invest an initial total amount of €10,000.
Buy & Hold manages three strategies, across equity, multi asset and fixed income spaces respectively. The company manages an investment fund and a sicav on each of the three asset classes.
As it is warned in the fund's prospectus, the strategy presents a high risk of credit and liquidity for investors given it can invest in low credit quality fixed income issuers.