Algebris Investments has launched an Italy-focused equity and credit fund, the UK-based asset management company has announced.
The Algebris Core Italy fund sits within the London group's Ucits platform and complies with the requirements of the PIR regulation introduced in Italy, which covers tax-exempt and long-term individual savings plans.
The fund will aim to invest primarily in credit and equity securities of Italian companies, focusing on the small and mid-cap space of the market.
The credit/equity split will be opportunistically managed and is expected to start at a 70/30 split. The fund will target a volatility range of 6-8% and aims to generate 5% annualised returns.
The firm has appointed Luca Mori as an Italian equity specialist, in order to expand its expertise in the domestic equity market. He will build on the firm’s investment capabilities, by providing research support to the portfolio management of the fund.
He will report to Algebris CEO Davide Serra and will be joined on the fund by Italian equity analyst Federica Bombelli.
Commenting on the launch, Serra said: ‘The launch of the Algebris Core Italy fund marks an important milestone for Algebris Investments.
'Having maintained a historical footprint and a loyal, solid investor base in Italy since the inception of the firm, we are now looking to invest and contribute to the country’s recovery.
'PIR saving plans represent a tremendous opportunity for Italian savers and we are offering an attractive and fairly priced solution to investors who seek exposure to the Italian recovery via 'best-in-class' companies and solid compounders.'
The fund is registered for sale in Italy, France, Luxembourg and the UK.