Psigma Investment Management has partnered with City Financial to introduce City Financial High Yield Opportunities fund exclusively for Psigma clients.
Managed by City Financial credit head, John Sullivan, the new fund will invest in European high yield bonds.
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With an initial £35 million of seed money from Psigma clients, the fund will charge 0.55% and will target on stressed and distressed European credit, aiming to yield 8% per annum when fully invested.
The new high yield fund is the third segregated mandate between Psigma and another party with TwentyFour Asset Management currently running two bond funds for Psigma clients.
Thomas Becket, CIO of Psigma, said: "By having a small fund for our own dedicated use, we are also hoping to mitigate some of the liquidity risk currently associated with credit markets."
"We are finding it incredibly difficult to find obvious value anywhere in global financial markets, but believe that the recovery from the European crisis and the disintermediation of the banking sector should allow for some excellent specific opportunities in European corporate credit markets.
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By GlobalData"We also feel that the current dislocations in European markets allow for once in a generation opportunity to benefit from distressed debt investing in Europe," Becket added.
