Investors look at alternative fixed income strategies
Investors are looking at alternative fixed income strategies and to gain higher exposure to the array of credit assets, according to multi-strategy asset manager CQS.
According to CQS’ head of long-only multi-asset credit, Craig Scordellis, over the last seven years credit markets expanded significantly and the market saw an arrival of new strategies.
However, the increasing complexity and pace of global credit markets had caused large funds to step back from attempting to manage the asset class internally as large institutions had realised they were not positioned to make effective asset allocation decisions across the credit spectrum required to do so.
“The time and processes to change allocations within fund mandates often means the opportunity has passed before a fund has time to get in – whereas we can move dynamically across a very broad opportunity set to capture returns,” Scordellis said.
According to CQS, institutional investors wanted credit and predictable income streams while de-risking to meet liabilities but they needed yield as well.
“The ‘building blocks’ approach of multi-asset means large investors can build flexible solutions that can be tailored to sit alongside existing portfolio allocations – and many investors are finding this an attractive long-term solution to their needs.”
Multi-asset credit strategies sought to exploit opportunities across the credit space by investing in senior secured loans, high yield bonds, investment grade bonds, asset backed securities and convertible bonds.
Recommended for you
Perpetual has seen AUM rise 6 per cent in the last quarter but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.
In the latest Meet the Manager profile, Money Management speaks with Michael Skinner, founder and managing director at Blackwattle Investment Partners.
Global fixed income fund Bentham Global Opportunities has been added to several major platforms, enabling it to be accessed more easily by financial advisers.
Following yesterday’s news about First Sentier Investors closing four investment teams, a second global asset manager has announced it is closing its only dedicated Australian fund.
