The Futuregrowth Yield Enhanced Bond Composite targets high returns through a combination of moderate credit concentration limits, active interest rate risk management and active off-benchmark bets.
For more information on this fund, please email fundinfo@futuregrowth.co.za
The benchmark is the All Bond Index.
OBJECTIVE
The Composite seeks to outperform the ALBI + 1% over a rolling 3-year period.
COMPOSITION
The Composite invests in a wide range of debt instruments including those issued by government,parastatals, corporates as well as securitised assets. The inclusion of such is subject to credit committee approval. The Composite has an allowance to invest up to 50% in unlisted credit and in addition, an allowance to invest in up to 5% equity assets (which is usually related to an underlying credit exposure) subject to investment committee approval. The resulting effect culminates in significant risk-adjusted alpha generation over time.
YIELD ENHANCED STRATEGY
Our yield enhanced strategy relies on maintaining strong relationships with market players. This allows us to see a large degree of deal-flow on a continuous basis and keep an eye on ever-evolving credit events in the market. In the unlisted space, our specialist structuring skills allow us to make loans that ensure lenders achieve the greatest degree of investor protection through loan terms, covenants and security while ensuring risk-adjusted returns with good diversification.
// Subscribe to receive our bond market commentary or industry leadership content//