Euro credit

Corporate credits – with an investment grade rating

Objective

We invest primarily in Euro-denominated corporate credits – that have a minimum BBB- investment-grade rating and are demonstrably aligned with the transition to a sustainable economy – with the aim of earning attractive total return (income and capital appreciation) over the long term.

Philosophy

In our view:

the European investment-grade market is inefficient and contains mispricings which can be identified and traded;
an active investment and risk management approach is best placed to secure attractive yields for investors, as well as create and preserve additional value by capitalising on these mispricings; and
businesses demonstrably aligned with the transition to a sustainable economy are likely to be more resilient – and therefore better credits – over the long term.

Approach

Our experienced team follows a systematic process that blends quantitative and qualitive expertise and experience and seeks to:

identify corporate issuers where the potential for credit profile enhancement is not yet reflected in the spreads and avoid those where we anticipate credit deterioration;
apply an active top-down and bottom-up approach to macro and fundamentals analysis to construct and risk manage a diversified portfolio of credits; and
focus on a sub-set of issuers demonstrably aligned with the transition to a sustainable economy, including on carbon-intensity metrics.

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.