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Komfie Manalo, Opalesque Asia:

Lyxor Asset Management has partnered with Wells Fargo Asset Management to launch the Lyxor / Wells Capital Financial Credit Fund, adding a credit specialist to its UCITS platform to help investors capture market returns by investing in high-yielding debt from global financial companies.

The fund concentrates primarily on fixed income credit instruments of global financial sector companies, with a European focus. The strategy invests across the capital structure of financial companies including senior, subordinated and contingent convertible bonds while hedging currency risk. The investment philosophy is based on the conviction that fundamental credit research, combined with active asset allocation within a risk controlled framework, has the potential to generate sustainable returns over the long term.

The global high yield financial bond sector has become a significant stand-alone asset class, with expected issuance volumes of approximately Euro 230bn over the next five years. Due to the greater oversight, stricter regulation and liquidity constraints imposed on the financial sector, high-yielding financial bonds offer an attractive risk-return profile compared to corporate bonds.

Gaining exposure to high-yield financial bonds, which are expected to exhibit a relatively low correlation to high-yield corporate bonds, allows investors to diversify their sources of potential fixed income returns.

The investment team is led by Sa......................

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