Aquila Capital launches alternative fixed income fund
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Aquila Capital has announced the launch of its first fixed income fund, the AC Triple Alpha Fixed Income 50, which opened on October 13.
The fund is an enhanced bond. It seeks to outperform a pure bond portfolio, and as a result offer higher yields by employing a more aggressive risk reward profile.
This includes a 50% overlay which employs the option writing of short calls and short puts designed to exploit two quantitative seasonal anomalies in bond performance.
The fund aims for returns of 8% with a volatility of 5.6%. Its underlying benchmark index is the iBoxx Euro Sovereigns Eurozone bond index.
The fund will be managed by Alceda Fund Management, a fully-owned subsidiary of Aquila Capital based in Luxenbourg.
The AC Triple Alpha Fixed Income 50 is aimed at high net worth individuals, and will be available across Europe.
It has an advisory fee of 0.5% per year and a performance fee of 15% on top of an outperformance of the iBoxx index.
