EUROPE - Baring Asset Management (BAM) is launching directional funds in Austria, Denmark and Switzerland under the Baring Global Investment Umbrella Fund.
The move follows authorisation by the Austrian authorities and the Swiss regulator on March 7, and the Danish regulator on March 8.
“While European investors favour bonds over equities, low yields on long-term bonds, momentum-trading in the bond market and price-insensitive buying is making many bonds investors nervous,” said Ian Pascal, marketing director at BAM.
“Our Euro and Dollar directional funds can short both bond markets and currencies by taking advantage of new European UCITS III legislation. Traditional bond funds cannot do this as they are restricted in the instruments they can use.”
BAM expects the funds – the Baring Directional Euro and US Dollar – to be registered in France and Belgium by the end of March.
“With difficult conditions in the bond markets we are likely to see conventional bond funds facing more volatility,” commented Colin Harte, fund manager and BAM’s head of government bonds and currencies.
“But European fixed income investors can take advantage of this volatility through directional strategies.”
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