Winnersrationale

While it would not be an understatement to say that 2022 turned out to be an annus horribilis for most major fixed income markets, GAM Investments’ GAM Star Credit Opportunities Fund was largely successful in its mission to deliver high levels of steady income from the bonds of quality issuers.

Using its extensive credit analysis experience, the portfolio management team has proved astute in selecting subordinated bonds, which can offer higher yields while benefiting from lower default rates. ESG also forms a key pillar of this approach, taking the form of regular engagements with investee companies’ management both pre- and post-investment.

The resulting strategy, which does not use leverage or derivatives outside of currency hedging, is a compelling blend of diversified and liquid fixed, floating, senior and subordinated debt issues, predominantly from the financial sector that benefits from the current environment of rising interest rates.

The portfolio is ably stewarded by Anthony Smouha, Gregoire Mivelaz and Patrick Smouha of contracted investment manager Atlanticomnium, which has been at the fund’s helm since 1985. Together, the three portfolio managers have more than 70 years of experience in the fund industry.

The GAM Star Credit Opportunities Fund has been successful in protecting investor capital in the short term and delivering market-beating absolute returns in the long term. From January to August 2022 — the part of the year considered for awards submission — the fund returned a negative 9.62% net of fees versus -14.2% for its benchmark, the Bloomberg US Aggregate Corporate Total Return Index in USD. On a three-year timeframe, the fund has returned an annualised 0.69% versus -2.1% for the benchmark.

That is why GAM Investments wins Best Fund Provider – Investment Grade Bond in Asian Private Banker’s 2023 Asset Management Awards for Excellence.