Managed by Omar Saeed, Senior Macro Credit Fund Manager at LGIM, the Fund is a global best ideas credit fund capturing relative value opportunities, aiming to provide growth and sustainable cashflows at relatively low risk. It has the flexibility to source global investment opportunities, unconstrained by an index, throughout all market conditions. The Fund looks to generate returns through an active allocation to core return seeking assets, such as high yield and emerging market debt, with tactical allocations made across credit, rates and currency markets to provide a diversified source of risk adjusted returns. It utilises a proprietary hedging overlay designed to manage the downside risk whilst amplifying the upside.
Saeed will be supported by LGIM’s 67-strong Global Fixed Income team, responsible for £107bn of actively managed assets (as of 30 June 2015). The Fund leverages the best ideas from across this highly experienced team, and also benefits from the proficiency in managing the L&G Dynamic Bond Trust, which seeks out the best opportunities across the full fixed income spectrum beyond the reach of more conventional funds, for retail investors.
Anton Eser, Co-Head of Global Fixed Income at LGIM said:
“Multi-strategy credit is an unconstrained investment approach and is designed to capture our best ideas across global fixed income markets, with a strong emphasis on downside risk. This style meets the evolving needs of our pension fund clients as their fixed income allocations increasingly require a more flexible, benchmark agnostic approach. The Fund draws upon the high-quality inputs of our global fixed income team, offering investors the strength of a well-resourced capability, and bringing considerable skill and experience to target consistent outperformance through volatile markets.”
The Fund aims to produce a positive total return over a 3-5 year horizon. The current performance target is a total return of cash + 5% p.a.* over a rolling five-year period. It is a Luxembourg-domiciled SICAV fund. For UK DB pension schemes a unit-linked life insurance version will be made available.
* Before the deduction of charges
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