TACTICAL CONTROLLED DURATION FUND
(QUALITY HIGH YIELD CORP CREDIT)

A short duration strategy designed to take advantage of volatility. For prudent investors who want to find opportunities in market instabilities and to profit without risking more than necessary.

Main goal

Our strategy is designed to be prudently opportunistic on already selected securities, using a line of credit when spreads widen during volatile times. This way we can boost the performance with the same risk profile.

Nature of portfolio

The “TCD” strategy is focused on high-quality BBs and borderline corporate bonds with short maturities. Typically, over 50% of the portfolio matures within 12 months; currently over 70%.

Why invest in this fund

While most corporate high-yield funds, both passive and active, are concerned with beating or hugging their benchmarks regardless of risk, our risk-management focus is also guided by a clear definition of opportunity. This allows the “TCD” strategy to shine in turbulent times.

Our expertise

Rigorous fundamental analysis targeting corporate issuers with stable and improving balance sheets.

Our macro risk-focused “guardrail approach” keeps the strategy cyclically aware, away from industries in secular decline, and adverse to overpaying when spreads are overly tight. This meant that coming into 2020, the fund was particularly short maturity and cash-rich and able to capitalize when distress selling offered good credits for excellent yields.

  1. What is the average credit rating on the bonds?

The average credit rating is BB, which may vary slightly according to market conditions and opportunities.

  1. What is the minimum amount to invest in the fund?

$150,000.

  1. Is there a lock-up period for the fund?

This fund has a lock-up period of one year and quarterly liquidity with a 95-day notice.

  1. Does the fund have income distribution?

No, this fund does not have income distribution.

  1. Who is the fund custodian?

UBS Luxembourg.

  1. What is the average maturity of the bonds held by the fund?

0.80 to 2.5 average portfolio duration: 40%-50% of the portfolio maturing within 12-15 months; 65% to 80% within 30 months.

FUND INFORMATION
 
Investment Manager
Harbor Ithaka, LLC (USA)
 
Fund Structure
Luxembourg RAIF SICAV-SIF
 
Fund Custodian/Depositary
UBS Luxembourg S.A.
 
Fund Inception
Sept 2019
 
Legal Counsel
Lux: Theisen & Marques
 
Auditor
Lux: BDO
 
Administrator
Lux: ADEPA
 
Reporting
Bi-monthly subscriptions and NAV
 
Income Distribution
None
 
Liquidity
Quarterly, 95-day notice
SHARE CLASSES
 
Class A
Management fee 0.80%
Minimum investment $150,000
ISIN: LU2012945171
Minimum Investment: Equivalent in USD of EUR125,000.00
Minimum Subsequent Investment: USD $10,000
 
Performance Fee
  • 10% above hurdle rate
  • Hurdle rate: TR of the ICE BofAML BB Corp 1-3 index net of management fees
 
Note:
“Exit fees” of between 0.40% and 0.50% are charged and payable to the fund to discourage short term investors and protect investors who are committed to the strategy.

Tactical Controlled Duration Fund