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Syz launches Continental Europe Income fund

Syz launches Continental Europe Income fund

Syz Asset Management has launched a European income fund for Citywire A-rated manager Michael Clements.

The Sicav fund will target a yield of 10% above the MSCI Europe Ex-UK index from 'underinvested' value opportunities, where these exist alongside rising payout ratios.

The house will charge a management fee of 0.75%. Syz said it was launching the fund on the back of demand from investors looking for decent yield.

Clements (pictured), head of European equities at SYZ, said: ‘Most European income funds focus on traditional high-yielding sectors, such as utilities and telecoms.

‘However, we have a different perspective, which often leads us to contrarian positions in less obvious areas.

‘This fundamental long-term approach aims to deliver a consistent steam of yield, but also an attractive diversification element compared to existing income funds.’

Over the last three years Clements has delivered a total return of 25.1%, just above a peer average of 24.3%.

He also manages Syz’s Oyster Continental European Selection, European Opportunities, and European Selection funds.

Clements told Wealth Manager last month he is actively tackling the rise of passives by investing in exchange traded fund (ETF) firms.

Among the holdings in his Oyster Continental European Selection fund are ETF trading firm Flow Traders and German stock exchange company Deutsche Boerse, which makes 40% of its profit from an index derivative business.

Clements said both stocks are ‘long-term volatility plays’ which also take advantage of the structural growth in passive investing.

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Michael Clements
Michael Clements
39/94 in Equity - Europe Excluding UK (Performance over 3 years) Average Total Return: 48.14%
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