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Avoca credit fund launches on Schroders alternatives platform
by Robert St George on Sep 26, 2013 at 10:37
The Avoca Credit Absolute Return fund is to set launch on the Schroder Global Alternative Investor Access (Gaia) platform in November as Avoca looks to boost the fund’s distribution.
The €63 million (£53 million) strategy will launch on the Gaia platform, which provides access to alternative Ucits strategies
Managed by Simon Thorp and James Sclater for the past 13 years, the Avoca strategy aims to identify and exploit mispriced improving or deteriorating credit on both the long and short side respectively.
The existing fund now merges into a new Gaia vehicle, targeting a 7%-10% return per annum through a benchmark-unconstrained approach that focuses predominantly on European corporate credit, with smaller global allocations.
Its mandate will span investment grade and high yield corporate bonds, credit default swaps, credit indices and sovereign debt.
‘We are currently seeing a strong investment case and wealth of alpha opportunities within the long/short credit space as we enter the mature part of the credit cycle and an upturn in the interest rate cycle,’ Thorp said.
The Avoca fund currently ranks fourth of 19 in Citywire’s Alternative Ucits Credit Strategies sector on a three-year basis, having posted a return of 13.2% compared with a peer group average of 6.8%.
The Schroder Gaia platform hosts five funds with a combined £1.5 billion of assets under management.
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