We use intensive, fundamental research to identify investment grade and high quality issuers with robust long-term businesses. We then analyse and select bond issues from lower down the company’s capital structure to earn attractive yields. Focusing only where we see the richest opportunity set, for instance within the financials sector and in hybrid bonds, we build a highly diversified portfolio of conviction ideas which has relatively low correlation to benchmarks and traditional credit funds.
Price and Performance (End of Month)
For accredited, professional, institutional and/or qualified persons only.
Past performance is not indicative of future performance. Performance is provided net of fees.
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Valuation date: 31 Dec 2019
Fixed Income – Specialist
The fund seeks to achieve high income generation with capital appreciation from investing in bonds of high quality companies
Publicly quoted corporate bonds of any credit quality issued predominantly by investment grade companies, with a particular focus on the financial sector and niche areas such as undated, floating rate and fixed-to-floater debt instruments
INSTRUMENT TYPES USED
Mainly corporate bonds, with limited exposure to convertibles, derivatives (mainly currency forwards) and cash
Able to use currency forward contracts to hedge the currency risk of non-base currency assets. Derivatives have not been used to hedge interest rate risk as inclusion of fixed rate and floating rate bonds provides natural hedge.
The fund does not borrow to invest and does not leverage its positions to generate a notional exposure in excess of its NAV.
The strategy’s key competitive advantages is a clear focus on and track record of minimising credit default risk while maximising total returns. Fundamental credit analysis expertise and experience to profit from the growing sophistication in companies’ capital structures Freedom and flexibility to pursue opportunities in under-researched, income-generative segments of the USD, EUR and GBP corporate bond markets.
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