Muzinich & Co launches absolute return credit fund
Muzinich & Co. has launched the Global Tactical Credit Fund, which is looking to find the best credit investments to deliver a target return of Libor plus 5%-7% while protecting capital in falling markets.
The fund will seek to achieve its target by looking for “relative value across rating, duration and geographic spectrums, coupled with rigorous fundamental bottom-up analysis of investment grade and high yield corporate bonds and corporate loans.”
Hedging will be allowed to lower short term volatility in periods of rising interest rates or widening spreads.
Mike McEachern, lead manager, said: “The prospect of rising interest rates has prompted demand for nimble, multi-asset fixed income strategies as a complement to more traditional investments. We believe the Global Tactical Credit Fund can deliver meaningful long-term returns throughout a market cycle and crucially, we have the investment flexibility and hedging tools to provide a measure of portfolio protection as we navigate through a period of potentially rising interest rates.”
“We can do this by moving in and out of global credit sectors, as well as up and down the credit quality and duration spectrum, as different fixed income assets move in and out of favour.”
Muzinich & Co’s funds rely on fundamental credit analysis, which it performs in-house.