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Aiming to generate a high level of income by primarily investing in a diversified portfolio of credit securities.

Our disciplined and robust process, attention to risk management, independent research and integrated team approach are all vital components.

Fraser Lundie

Lead Portfolio Manager

Truly global

We explore high-yield and investment-grade opportunities worldwide.

Across the capital structure

We search the capital structures of issuers for instruments that offer superior relative value.

Selecting securities, not just issuers

Security selection can be equally as important as issuer selection in identifying strong relative-value opportunities

Experienced team

A skilled, integrated team whose principal members have worked together since 2004.

Investment approach

Exposure to the team’s best long-only investments, combined with strategies that defend against market volatility, should generate positive absolute returns through the cycle. To achieve this, the portfolio is split into return-seeking and defensive buckets:

  • Best selection: high-conviction, long-only investments in corporate bonds, loans, convertible bonds and derivatives. Comprises two-thirds of the overall portfolio
  • Defensive: a range of bearish strategies that aim to defend against market falls. Comprises one-third of the overall portfolio.

We believe that global, relative-value investing throughout the capital structures of issuers can deliver strong returns through the cycle.

Through top-down analysis, we determine our risk appetite and the return prospects of different regions and sectors. These findings direct our disciplined, bottom-up research, in which we seek exposure to issuers with attractive credit risks and aim to determine which securities in their capital structures provide superior relative value.

Our global approach, in which we invest throughout the US, Europe and the emerging markets, provides us with access to an expansive set of opportunities and sources of liquidity.


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Europe v US: For direct lenders, where is the relative value? Direct lending is a promising market in Europe, but does it offer better opportunities than its more-established US counterpart? Patrick Marshall, Head of Private Debt & CLOs at Hermes Investment Management, assess the differences between the two and presents his views on what it takes to invest successfully in European loans. Europe: New kid on the bloc Europe’s emergence as a direct lending market is still relatively recent. The changing regulatory landscape in the post-financial crisis era transformed loan markets. New capital adequacy rules, amplified by the Capital Requirements IV directive under Basel III, have forced banks to reduce risk and therefore the size of their loan books. Prior to 2008, banks provided more than 80% of larger corporate loans in Europe. Data from S&P LCD shows the European loan market grew aggressively from €15bn in 1998 to €165bn in 2007, a year before the global financial crisis. In its wake, small- and medium-sized (SME) businesses had little access to capital. Their borrowing needs could not reach the scale required to cost-efficiently access the bond market. This created a gap in the market for alternative lending, and investment firms have filled the void left by European banks to provide SME financing. Direct lending now accounts for 10% of Europe’s loan market[2]. This rapid growth is in no small part driven by a surge of interest in the asset class. Investors with long-term liabilities are attracted by an illiquidity premium of almost 60bps, as well as a desire for strong yields that are lowly correlated with listed markets, capital preservation and inflation protection.

Sales Contacts

Mark Miller, Head of UK & MENA Institutional