Kairos, asset management and private banking group, pushes on financial income, flexible and thematic bond sub-fund of the harmonized Luxembourg Sicav Kairos International Sicav. The portfolio is built with bonds predominantly from the European financial sector and has a focus on new generation debt securities.
KIS Financial Income in fact, it intends to seize the opportunities offered by the current valuation gap between the financial and corporate sectors and by bank recapitalization and merger operations, in the light of the restructuring and consolidation phase that the financial sector is going through. Subordinated bonds, as capital instruments, represent a valid alternative to the placement of shares and are therefore able to offer interesting potential in terms of returns.
The construction of the portfolio is based on a macro evaluation with a top-down approach, which makes it possible to establish how to decline the risk by type of instrument and by geographical area, while the selection of issuers is based on a bottom-up approach, with the objective of identifying an optimal ratio between risk and return. The product can count on a broad investable universe both in terms of the number of issuers and issues.
The management team is led by Rocco Bove, with a long experience in the sector, supported by the portfolio manager Andrea Ponti and by the analyst Giulio Pesenti. The team, formerly responsible for the KIS Bond and Kis Bond Plus sub-funds, stands out on the market for a highly active and flexible management style.
“The current macroeconomic environment can be favorable for bond investing if well managed,” he commented Rocco Bove, Chief Bond Officer of Kairos. “The economic cycle is recovering after years of recession, political risk in Europe has eased and central banks are starting to reduce extremely expansionary policies. This scenario is accompanied by the process of strengthening the banking system, which expands the diversification possibilities for investors looking for attractive returns, who will be able to focus on alternative debt instruments, such as subordinated bonds. We believe financials offer the most attractive risk-reward profile at the moment, as well as ample liquidity. We see growth opportunities for the subordinated bond market between 2017 and 2019, also as a result of the new regulations, and we also expect new issues from Italian institutions. KIS Financial Income has been designed to seize the opportunities that will present themselves in this sector, through the analysis of the capital structure of the issuers and the macroeconomic context. Since its launch at the end of July, the product has already raised more than 500 million Euros”.
