The newly launched fund, domiciled in Luxembourg, is meant to offer investors access to potentially high returns whilst “ensuring solid risk management through focused credit analyses and active security selection,” said a press release issued by the firm on 1 October 2024. It will invest mostly in bonds denominated in USD and euro, and predominantly in the higher BB credit segment and--to a lesser extent--in the B segment.

BB ratings are part of the “speculative” category and “indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time,” says the . “Highly speculative” B ratings, the next level down, mean the “material default risk is present, but a limited margin of safety remains.”

“We can draw on many years of expertise in the high-yield segment and on a well-established team,” commented Daniel Holtz, head credit at Swiss Life Asset Managers, in the communiqué. “We are confident that the new fund offers an attractive opportunity for investors, thanks to its investment strategy and high-quality portfolio.”

The press release added that “foreign currency risks are hedged against the fund’s base currency (USD),” and that investors can choose between currency-hedged unit classes in Swiss francs and euros. The fund is only for qualified and professional investors in Switzerland, Germany and Luxembourg.

Swiss Life Asset Managers had CHF 116.7bn of assets under management for third-party clients as at 30 June 2024. It employs more than 2,200 people in Europe. Swiss Life Asset Managers Luxembourg employed an average of 85.5 FTEs in the grand duchy during the 2023 financial year. As at 31 December 2023, it managed 25 alternative investment funds and two Ucits funds, said its latest annual accounts in the Luxembourg business registry.