Factsheet: GAM Star Credit Opps (GBP) Instl GBP Acc
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
|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 %|
|United Kingdom||100.00 %|
|Financial Services||100.00 %|
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.
The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.
This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.
You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.