BLF starts global bond fund

Eyes annual return of up to seven percent

Banque Libano-Française (BLF) launched a global bond fund, LF Total Return Bond Fund. The fund, incorporated in Luxembourg, is managed by BLF's Fixed Income Desk. Jamil Koudim, Head of the Fixed Income Desk at BLF, said the fund’s strategy is focused on investing in global bonds issued by companies, with a focus on Europe, the United States, and Gulf countries.

According to Koudim, BLF’s Fixed Income Desk has been managing the bank’s bond portfolio for the past three years: “We have made an annual return of 6.4 percent on average.” The new initiative aims to offer this opportunity to BLF’s clients and other investors. “Our target is to achieve an average return of between five and seven percent per year,” he said. The fund was incepted in September and obtained the approval of the Central Bank in December.

BLF Group is a co-investor in the fund and has placed a $10 million initial capital. Many investors have joined the fund. “We have had good demand from our existing clients as well as new investors, and we are approaching more investors, including insurance companies,” said Koudim. The fund is open-ended and the minimum subscription per investor is $100,000. BLF aims to raise the size of the fund to $50 million by the end of this year.

“We will look at opportunities whereby it would be possible to maximize capital appreciation while maintaining low volatility,” Koudim said. So far, the fund has invested in bonds by 15 different issuers.The LF Fund mainly targets high net worth individuals and institutional investors.