Portfolio Concept, a privately-owned investment management company, has launched the Alpha Blend Global Income Fund (UCITS), with the objective of seeking yield from bonds and currencies.
The tactical fixed income management is delegated to LGT Capital Partners Ltd. The multi-strategy currency alpha is obtained by an overlay investment managed by Absolute Return Strategies Ltd.
“In today’s low yield environment, investors need to go beyond the bounds of traditional income strategies,” says Titus C Schlösser (pictured), Fund Manager and Managing Director at Portfolio Concept. “Non-traditional sources of income provide meaningful diversification and potentially higher sources of yield.”
The Alpha Blend Global Income Fund provides two non-correlating decks of income generation in a single UCITS structure. This innovative application allows an extremely efficient use of capital as each dollar invested benefits from the revenue stream generated by the bond portfolio and in addition the revenues from the currency overlay.
“Foreign Exchange is the world’s most liquid market, exhibiting returns which have low correlation to both traditional and alternative asset classes. Currency alpha can provide both diversification and a stable return stream,” says John Dean, chief investment officer of Absolute Return Strategies. “ARS’ proprietary selection methodology is designed to identify leading FX strategies for inclusion in the portfolio and uses the latest prime brokerage technology to access this important income source.”
The Alpha Blend Global Income Fund is designed to deliver returns in excess of those available in the investment grade market, with an independent risk profile. Its fixed income portfolio has a broad investment scope, allowing to tactically source yield from a variety of instruments, such as sovereign debt, investment grade, high yield, EM debt, structured debt and credit. A return stream sourced from some of the world’s top performing FX managers is then overlaid onto the fixed income portfolio with the objective of delivering a strong and stable income stream to investors.
