TWENTYFOUR ABSOLUTE RETURN CREDIT AQN GBP

Investment Process

The fund seeks to achieve target returns of 2.5% over cash after fees, with volatility below 3%. The managers describe it as “a genuinely, long-only, unlevered bond fund and easy to understand”. The process is focussed on finding bottom-up opportunities in investment-grade bonds with maturities of up to five years. In addition to that, the management team seeks to generate returns from asset-backed securities and high-conviction high-yield bonds (those rated BB only). Whilst the process focuses on the sterling-denominated market, the portfolio may also include euro and US dollar denominated issuers. The management team take high-conviction decisions based on rigorous macro-economic, technical and issuer analyses. They continually assess conditions and future developments and in line with them, allocate interest rate and credit risks with the aim of benefitting from any market environment. They select securities and instruments within the investment universe where they see the most rewarding yield and/or hedging values. They actively adapt the portfolio to invest in attractive opportunities whenever they occur.