Both are Dublin-domiciled, Ucits IV compliant funds, offering investors weekly liquidity and have their portfolios based on existing flagship Cheyne strategies.
The Cheyne Global Credit Fund is an actively managed, directional fund, investing in investment grade and “crossover” credit, primarily in North America and Europe, where the firm said it believes credit spreads are currently pricing in too much downside “given the very robust fundamentals of most corporate balance sheets”. The corporate credit team managing this fund manage net assets of $1.3bn.
In addition, Cheyne has launched its Real Estate Bond Fund which invests in high quality real estate-backed bonds. Cheyne said the fund’s management team, which also has assets under management of $1.3bn, has identified a “compelling investment opportunity arising from the structural dislocation in Europe’s €1.4trn real estate debt market, offering attractive yields with strong downside protection”.
Jonathan Lourie, co-founder and chief executive said: “Cheyne has ten years of experience in corporate credit investing and eight years of experience in real estate debt investing and we look forward to enabling a wider range of investors to access two of our leading and most successful strategies.”
While not marketed directly to retail customers, the products, which are available in sterling dollar or euro denominations, do have a distributor share class through which professional investors can access the funds.
In terms of distribution, Cheyne said it will register the fund in countries where there is investor demand.
The Cheyne Global Credit Fund and the Cheyne European Real Estate Bond Fund are regulated by the Irish Financial Services Regulatory Authority.
