Psigma and City Financial join forces for high yield fund launch

Psigma Investment Management has teamed up with City Financial to launch a European high yield fund for its head of credit John Sullivan.

The City Financial High Yield Opportunities fund has been seeded with nearly £35m and will be available exclusively to Psigma's clients. The strategy will focus on stressed and distressed European credit, aiming to yield 8% per annum when fully invested. Sullivan will run the fund as a concentrated portfolio of 25-35 holdings and will be able to invest up to 20% in distressed assets, providing a source of extra yield. James Knowles, Psigma's head of fixed interest, said: "The inclusion of distressed assets should result in some capital appreciation over the medium term. "Unlike...