Ivy Investment Management Company is launching two new income-oriented mutual funds in partnership with Apollo Credit Management that, once approved by the SEC, are scheduled to become available in October.
Both funds will include allocation sleeves that will seek to follow current Ivy Fund strategies and the Apollo Total Return Fund strategy, which is Apollo’s flagship strategy in liquid alternative credit.
• Ivy Apollo Strategic Income Fund will include sleeves intended to replicate the Ivy High Income Fund strategy and the Ivy Global Bond Fund strategy, with flexible allocations to each of those strategies of between 10 per cent and 70 per cent of the Fund’s total assets. In addition, there will be a 20 per cent target allocation (static) to a sleeve managed by Apollo consistent with its Apollo Total Return strategy.
• Ivy Apollo Multi-Asset Income Fund is expected to have a 50 per cent allocation to fixed income and a 50 per cent allocation to equities. It will include sleeves consistent with the Apollo Total Return strategy (20 per cent of the Fund), Ivy High Income strategy (30 per cent of the Fund), Ivy Global Equity Income strategy (40 per cent of the Fund) and Ivy Global Real Estate strategy (10 per cent of the Fund), which is subadvised by LaSalle Investment Management Securities.
“These funds enable investors to seek income by gaining exposure to a variety of asset classes in one investment,” says Thomas W Butch (pictured), President and CEO of Ivy Funds Distributor, Inc. “We’re pleased to partner with Apollo, which brings experience in liquid and alternative credit investments.”
“We believe this represents a great opportunity for retail investors to gain exposure to a mix of asset categories that can’t easily be found in other traditional mutual fund products,” says Stephanie Drescher, partner and Global Head of Business Development at Apollo. “Apollo and Ivy Funds provide a compelling and complementary combination of capabilities and innovation to bring these distinctive funds to market.”