Insight High Grade ABS B GBP

Investment Process

The managers aim to outperform cash by 2% per annum gross of fees over three-year rolling periods. They aim to achieve this through taking an absolute return approach to fixed income investing. The investment team assess every loan on a quantitative and qualitative basis. They meet each of their collateralized loan obligations (CLO) managers at least once a year, and rate them on a yellow, amber, or red framework based not just on the quality of the loans but also governance. Although the fund’s main exposure is to prime residential mortgage-backed securities (MBS) the managers will also invest a limited amount into commercial mortgages, credit card loans, auto loans, student loans and personal loans depending on the point in the economic cycle and the valuation of various asset classes. Its main geographical exposure is to the UK, followed by Pan-Europe, the US and Australia.