fund

MUZINICH LONGSHORTCREDITYIELD GBP HEDGED

An absolute return long / short credit strategy investing primarily in the US high yield bond markets.

PRICE (INC)

15012p

PRICE (ACC)

-

INITIAL CHARGE

1%

0%

ANNUAL MANAGEMENT CHARGE

1%

ONGOING CHARGE

0.85%

YIELD

0%

1 YEAR

3.54%

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Prices as at 01 Dec 2023.

We don’t currently provide commentary on this fund.

Past performance is not an indication of future performance.

Capital at risk.

The Fund seeks to generate consistent attractive returns on a risk-adjusted basis over a three to five year period. The Investment Manager seeks to meet its objective by investing primarily, either directly or indirectly through the use of FDI, in higher-yielding corporate debt securities (including notes, such as floating rate short-term and medium-term notes, Contingent Convertible Securities and bonds) issued primarily by US issuers, and also European and/or emerging market issuers.

Fund summary

Sector	Specialist Bond
Structure	OFFSHORE FUND
Launched	June 2012
Size	£316m
Yield	0%
Dividends paid	Accumulation units only

Charges

Standard Initial Charge	1%
Initial Charge Via BestInvest	0%
Additional Bid/Offer Spread	0%
Annual Management Charge	1%
Ongoing Charges Figure	0.85%

Investment Process

Portfolio construction is based on a four pronged strategy consisting of a long book of core diversified high yield credits designed to capture coupon and capital appreciation, a short book of sector and individual security shorts, a credit arbitrage book of pair trades at the capital structure and between companies, a high quality long short maturity book designed to capture yield with minimal volatility. On account of the high coupon nature of the asset class the strategy is usually between 65%-130% net long. Portfolio downside protection is provided through the arbitrage and short books and by reducing long credit beta across the portfolio. The portfolio risk is managed to ensure diversification, with the aim of reducing single position downside risk to 25bps. Single security shorts are achieved via a total return SWAP with Deutsche Bank.

The information on this website is not intended to be advice or a recommendation to buy, sell or hold any investment mentioned. The value of investments and the income from them can go down as well as up and you may not get back the amount invested.

Past performance is not a guide to future performance. View full risk warning