Fortune Financial Strategies Launches Fixed Income Fund
29 MAY, 2024
By Jose Luis Palmer from RankiaPro Europe
Swiss wealth manager Fortune Financial Strategies has introduced a new fixed income fund, the Montlake Alpha Fixed Income fund, which launched on May 23 with €99.02 million in seed money.
Fund Details and Management
The fund is managed by Simon Khalili, the founder of Fortune Financial Strategies, and primarily invests in European bonds, comprising 66.6% of the portfolio. To mitigate currency risk, all non-USD investments are hedged back to USD. The fund consists of Fortune Financial Strategies’ pre-existing bond portfolio, which includes 50 bonds.
The fixed income strategy marks Fortune Financial Strategies’ second fund on the Montlake UCITS platform, following the Montlake Volatility Arbitrage UCITS fund, also managed by Khalili. The Montlake platform, known for creating UCITS versions of US-based hedge funds, currently manages €4.13 billion across over 30 funds.
Waystone, a firm specializing in governance, administration, risk, and compliance services, will manage the strategy, while Northern Trust will act as the depositary bank and administrator.
The difference between our strategy versus other funds is in the execution.
If we receive subscriptions, the PM will wait for the right opportunity, instead of automatically allocating to the existing portfolio. This enables the PM to buy bonds at attractive values, effectively adding 100 to 200 basis points of YTM [yield to maturity] on each underlying bond purchase.
We are also risk averse, having eliminated the Credit Suisse AT1 exposure back in December 2022
Leonard Aquarone, head of institutional sales and marketing at Fortune Financial Strategies.
Investment Strategy and Metrics
Available for purchase on the Montlake UCITS platform, the fund offers multiple currencies and share classes. It features an average portfolio rating of BBB+, a yield to maturity of 9.61%, and a duration of 4.75 years. This strategy reflects Fortune Financial Strategies’ commitment to delivering high-yield investment opportunities within the fixed income space.
Firm Overview and Assets
Fortune Financial Strategies oversees €2.02 billion in client assets, with 80% allocated to fixed income portfolios. This new fund launch aligns with the firm's strategy to expand its fixed income offerings and provide robust investment solutions to its clients.
With the launch of the Montlake Alpha Fixed Income fund, Fortune Financial Strategies continues to solidify its presence in the fixed income market, offering investors a well-structured and high-yield investment option within a diversified portfolio.
