We aim to deliver a consistent level of income for our investors with a low or medium level of volatility.
Whilst the fund is in the IA’s Sterling Strategic Bond sector, we believe it would work equally well as a core allocation to financial and non-financial credit, given the fund’s average IG credit rating.
Our investment approach is built around three core components, namely:
- Predictable, secure income from a fully diversified credit portfolio
- A short duration stance – that is, low sensitivity to changes in risk-free rates, which helps minimise the risk of large drawdowns
- Earnings visibility of the underlying credit holdings
The above three elements are blended with rigorous credit analysis and our extensive knowledge of the primary (new issues) market, which adds a further source of return potential and diversification for the fund. When taken together, they enable us to create what is, in effect, an ‘all weather’ long-only credit portfolio.