TACTICAL CONTROLLED DURATION FUND
(QUALITY HIGH YIELD CORP CREDIT)
Nature of portfolio
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.
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.
- 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.
- What is the minimum amount to invest in the fund?
- 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.
- Does the fund have income distribution?
No, this fund does not have income distribution.
- Who is the fund custodian?
- 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.
- 10% above hurdle rate
- Hurdle rate: TR of the ICE BofAML BB Corp 1-3 index net of management fees