Finisterre refocuses fund on emerging market corporate credit
Finisterre Capital, an emerging markets total return specialist, said it is refocusing the liquidity terms of Finisterre Special Situations Fund to accommodate growing clients demand.
The fund will now be known as the Finisterre Credit Fund (FCF) and will continue to concentrate on bottom-up corporate credit. Since the credit crunch, the FCF's investment focus has been primarily on liquid distressed and corporate credit and it has benefited greatly from the abundance of opportunities in these sectors.
Consequently, the redemption terms have been shortened to monthly on 90 days notice to achieve a more appropriate balance between the FCF's assets and its liabilities. Moreover, special situations type of investments will be limited to 5% of NAV.
The move comes as a number of clients expressed interest in a more liquid corporate credit strategy. Recent inflows from investors keen to take advantage of the increasingly important corporate credit segment of the emerging market debt universe have taken the FCF's assets under management to over $200mm for the first time (as of beginning of May).
"Given the de-emphasis on special situations, we felt the name of the fund should reflect its principal strategy," said Paul Crean, Chief Investment Officer of Finisterre Capital. "We also believe that the new strategy fits better with our other funds, giving our investors exposure to both top-down and bottom-up investment styles."
Finisterre's assets under management were close to $1.1 billion at the beginning of May this year. Last year the FCF returned 45.38%. It is up approximately 8.6% YTD and 12.3% annualised since inception.