Aegon Asset Management has launched the Aegon ABS Opportunity fund for lead manager Frank Meijer, which will actively invest in the asset-backed securities market.
The new fund aims to deliver a through-the-cycle return of Euribor + 500bps by investing in ABS markets across the globe, focusing on European issues with a credit rating deemed to be ‘non-investment grade'.
The vehicle will be managed using the expertise of the 20-strong global ABS team, which already runs €15bn worth of ABS strategies globally, with Meijer at the helm.
Meijer says: "We believe that clients have been drawn to ABS for a number of reasons, not least the attractive yield offered compared to traditional fixed income.
"Many clients are also seeking to build allocations to alternative fixed income or illiquid asset classes. Our new ABS offering is a relatively liquid alternative fixed income strategy that compares favorably with other potential options such as hedge funds, which investors may consider too volatile, or traditional fixed income like high yield where there is insufficient yield - especially in current markets."
The fund is an Irish domiciled Qualifying Investor Alternative Investment Fund (QIAIF), currently available for sale in UK, Netherlands, Ireland, Belgium, Spain, Italy, Denmark, Finland, Sweden and Norway.