Factsheet: GAM Star Credit Opps (GBP) Instl GBP Acc

Sterling Bonds

Rated Fund 2016-2018. Perfect for the current environment

This fund was crowned Money Observer's Best Larger Sterling Bond Fund in 2015 and 2016, and named Best Sterling Bond Fund in 2017, when we judged funds of all sizes under one category.

It aims to provide investors with a high income, more than 4 per cent at present, from high-quality bonds. Managers Anthony Smouha and Gregoire Mivelaz achieve this by lending to investment-grade companies, but instead of buying their �senior' bonds, which are first in line for repayment if a company goes bust, they opt for their �junior' or �subordinate' bonds.

They look for companies that are doing well in the belief that such businesses are unlikely to default on their debt commitments, whether they are senior, junior or subordinate. They say this approach is more akin to an equity fund manager's, because it means focusing on the health of the company rather than what would happen if something went wrong, as bond managers tend to.

FundCalibre, the fund ratings and research provider, rates this as an �Elite' fund and believes it is perfect for current market conditions. Managing director Darius McDermott says: �Very little of what they own yields less than 6 per cent at the initial purchase point, and this gives them far less interest rate sensitivity than many of their peers, which is valuable in the current environment.'

The same can be said of the fund's 43 per cent allocation to 'fixed-to-floater bonds'. These provide a fixed interest for a specified period and then float at a spread over a specified benchmark, which is regularly re-set and can move in line with interest rates.

Narrative and ratings content all as of 01 January 2018.

See all Money Observer rated funds
Name
GAM Star Credit Opps (GBP) Instl GBP Acc
Manager
GAM Fund Management Limited
Type
Open Ended Investment Company
ISIN
IE00B510J173
Sector
£ Strategic Bond
Launched
04/02/2013
OCF
1.18 %
Risk Rating
4
3 Year Sharpe
1.45
3 Year Alpha
6.37
Yield
0 %
Benchmark
BBgBarc Sterling Agg Corp TR GBP
The investment objective of the Fund is to achieve long-term capital gain in Sterling. It will be the policy of the Fund to seek to achieve its investment objective through investment principally in income bearing or accruing securities with fixed principal amounts including government bonds, corporate bonds, junior debt securities, preferred shares, convertible securities and contingent capital notes.
Holding %
Hsbc Hldgs Cv 2.96 %
Lloyds Bk 2.50 %
Credit Agricole Sa Cv 2.32 %
Coventry Bs Cv 2.28 %
Stichting Ak Rabobank Cert FRN 2.22 %
Gen Accident Pfd 2.14 %
Barclays PLC FXD-FRN TIER I PERP PIDI GBP (REGS) 1.99 %
Hsbc Hldgs Cv 1.99 %
Lloyds Bkg Grp FRN 1.91 %
Abbey National 1.90 %
Region %
United Kingdom 100.00 %
Sector %
Financial Services 100.00 %
Name
GAM Fund Management Limited
Address
Dublin 2, Ireland
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Anthony Smouha
Joined 07/12/2011

Started his career at Credit Suisse White Weld in 1977 in the Eurobond primary market and in Mergers and Acquisitions. From 1982 to 1992 he worked for SG Warburg Soditic, becoming a manager in the fixed income bond trading group, and from 1993, joined his father at Atlanticomnium S.A.

Data provided by Morningstar.

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