In 2021, we witnessed the post-pandemic recovery for some economies, especially the U.S. economy. In 2022, this recovery is expected to continue and become more global as Europe and other major economies are forecasting higher GDP growth rates. Global trade resumed in 2021 and is expected to remain strong this year.
Bond and credit markets typically reflect macroeconomic conditions. With improving consumer confidence and healthy corporate performance, credit investors will have a wider range of opportunities going forward. In addition, the relatively high valuations of equities may induce investors to look further into bonds/credit and consider various strategies.
LEON MFO Investments Limited is launching two funds in the first quarter of 2022 that will allow investors to access the corporate bond and credit markets.
The firm is using its strong investment expertise in wealth management for MFO clients (with more than $1 billion under management) and is offering its best performing investment strategies through these funds to the local Cypriot institutional and HNWI clients. For investors who prefer to invest in EUR, the funds offer EUR currency hedge.
This is why two share classes are available (EUR and USD) allowing investors to select the share class most appropriate for them.
The Leon Income Fund RAIF V.C.I.C. PLC offers investors the opportunity to participate in the global bond market with a medium-risk strategy that has worked well for Leon’s discretionary portfolios since 2015.
This fund’s portfolio is well diversified and consists of leading U.S. and global companies. With well-defined portfolio parameters, the fund achieves optimal diversification and risk reduction. This fund is targeting a net return of 3.0% in EUR or 4.0% in USD terms. With banks offering very low or sometimes negative interest rates on deposits, this fund provides a choice that was missing for the local market. The minimum investment is EUR 125,000 and investors can subscribe or redeem monthly.
The Leon Global Hedge Fund RAIF V.C.I.C. PLC invests in specialised hedge funds which focus on two broader themes: a) Short-term alternative credit and b) Arbitrage. Short-term alternative credit includes trade finance, consumer finance, receivables, bridge credit, and more. The Alternative credit portfolio benefits from increases in short-term interest rates and provides a good hedge against inflation. On the other hand, arbitrage opportunities are sought in interest rate arbitrage, equity index arbitrage, FX or commodity arbitrage, and volatility arbitrage.
The Arbitrage portfolio benefits from market volatility and provides a good hedge against market corrections. Managed by an experienced team, this fund identifies hedge funds that have consistently performed well in the above areas and funds that have low correlations between them. This is a disciplined strategy that has consistently offered attractive returns to investors since 2018. The targeted net return is around 5% in EUR or 6% in USD terms. The minimum investment is EUR 250,000 with monthly subscriptions and quarterly redemptions with 190-day notice.
Disclaimer: This article does not disclose all associated risks and should not be considered as an offer or invitation to subscribe to units or shares in the above RAIFs.
LEON MFO Investments Limited is regulated by the Cyprus Securities and Exchange Commission.
License No. AIFM 37/56/2013
Tel.: +357 25 268 120