The CNMV has authorised the registration of the Hedge Fund Kenta Capital Pagarés Corporativos, whose investment policy focuses on corporate promissory notes. It is the first fund of its kind to be registered in Spain and is categorised as a short-term fixed income fund, with an average portfolio duration of less than twelve months. Kenta Capital will act as advisor and Renta 4 as manager and depositary. The fund will have two classes, one with and one without retrocessions, with a minimum investment of €100,000 for both.
This investment alternative is aimed at both professional and non-professional clients, although the latter must comply with the established requirements of knowledge of the inherent risks of the product. It is also a potential alternative for companies that want to manage part of their structural liquidity with a short-term product that meets certain profitability and credit risk selection criteria.
In addition, this new fund seeks to offer an estimated annual return in the current market scenario, beating market benchmarks such as time deposits and time deposits, taking into account a potential portfolio diversifying investment terms with an estimated average life of approximately seven months. Given the nature of the product, where investments are short term, Renta 4, with the advice of Kenta Capital, will carry out an active management following the requirements and investment policy defined in the fund prospectus with the objective of maximising the profitability of the unitholders, building a diversified portfolio of issuers.
The selection of the investment portfolio focuses on corporate issuers with a liquidity position and available funding lines commensurate with their size, as well as a reasonable level of leverage based on their sector of activity and an appropriate maturity profile between short and long term.
“The main idea of the fund is to provide access to the promissory notes market, in a cost-optimised, diversified and simplified format, to investors of different types (companies, asset managers, insurance companies, etc.) whose objective is to obtain an optimal return to invest structural liquidity in the short to medium term,” say José Nieto, chairman of Kenta Capital, and Alvaro Bergasa, CEO of Kenta Capital.
Antonio Fernández Vera, Chairman of Renta 4 Gestora, stated: “The investment context is constantly changing and our vocation is to always adapt, with an offer of quality investment instruments that best take advantage of these trends and opportunities. Kenta Capital Pagarés Corporativos is an example of this innovative character, adding to the pioneering range of thematic, residential and private equity funds, among others.”
Garrigues advised Kenta Capital with a team formed by partners Luis de la Peña and Gonzalo García-Fuertes, senior associate Francesc Cholvi and associate Marcelo Moreira.