An all-weather credit portfolio
Investment Approach
Rigorous bottom-up driven credit selection process with full integration of proprietary sustainability framework and transition alignment evaluation
Investment Opportunity
Provides access to the best ideas available in the credit universe by dynamically allocating across global credit markets
Investment Universe
Global credit across both developed and emerging markets
Target Return
Overnight SOFR +4% per annum over a rolling 5 year period.
Invests across multiple return drivers. Seeks to be defensive in downturns and capture upside consistently.
High conviction - but well diversified - best ideas portfolio complements more macro-driven (top-down) debt allocations
Focuses on credit spread-driven returns with low interest-rate sensitivity. Sector, region, benchmark and asset class agnostic
Aims to provide a higher Sharpe ratio and lower drawdowns than equities. Monthly and daily liquidity options available
There is a risk that the issuers of fixed income investments (e.g. bonds) may not be able to meet interest payments nor repay the money they have borrowed. The worse the credit quality of the issuer, the greater the risk of default and therefore investment loss.
The use of derivatives may increase overall risk by magnifying the effect of both gains and losses leading to large changes in value and potentially large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss.
The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise.
There may be insufficient buyers or sellers of particular investments giving rise to delays in trading and being able to make settlements, and/or large fluctuations in value. This may lead to larger financial losses than might be anticipated.
The specific collateral used to secure a loan may decline in value or become illiquid, which would adversely affect the loan’s value. Many loans are not actively traded, which may impair the ability of the Portfolio to realise full value in the event of the need to liquidate such assets.