Record PLC expands further into European market with new municipal
The currency manager said the fund aims to achieve returns of 60 basis points over Euribor by investing in short-term loans to European municipalities
Record PLC (LSE:REC) has continued its expansion into the European market with the launch of a new private debt fund, tailored to German institutional investors, that will primarily invest in municipal loans.
The specialist currency and derivatives manager said the fund, EDS Universal KOMMUNALIS+ Liquidität Short Term, aims to achieve returns of 60 basis points (0.60%) over Euribor, with two-month liquidity, by investing in short-term loans to European municipalities and adding short-term receivables from investment grade EU corporates.
Record will be acting as asset manager for KOMMUNALIS+ in partnership with technology investment specialists European Debt Solutions (EDS) and European fund service provider Universal-Investments Group.
The fund is an open ended special alternative investment fund (AIF), registered in Luxembourg.
READ: Record to launch German focused investment product as client numbers grow
Record CEO Leslie Hill said the fund is unique in its structure and tailored precisely to the needs of German institutional investors.
“The new fund is a further building block in our ongoing expansion into innovative areas that meet the needs of our clients while also representing a further step in our planned expansion into the valuable European institutional market, where Record is well regarded and has a growing presence,” Hill said.
Shares rose around 2% to 79.80p at the open.
Read More: Record PLC expands further into European market with new municipal