The strategy hones in on the opportunity to buy short-dated developed market credit offering attractive yields. The approach blends investment grade and high-quality high yield bonds maturing in 2026 to reach a euro target gross yield of 5%.
The fund is run by Andrew Lake, Head of Fixed Income, and Fatima Luis, Senior Portfolio Manager. The team believe we are at the tail end of the economic cycle, with bad news already priced in. As such, this environment creates a potential opportunity to invest in high-quality credit at a discount, securing an attractive yield and potential for small capital uplift.
The strategy is built around three core pillars:
Best ideas – The team follow a bottom-up approach layered with FTV analysis, leveraging significant experience in credit and short-dated investing.
Quality focus – The strategy is well diversified across the fixed income universe and targets higher-quality issuers in order to minimise default risk, alongside BB rated securities with a relatively short duration.
Timing – With global fixed income markets at levels not seen since 2008, the strategy aims to capture a rare opportunity to lock in attractive yields for a specific period of time.
The fund, which is categorised as SFDR Article 8, is primarily invested across Developed Europe and North America.
Andrew Lake, Head of Fixed Income
Andrew has experience in the asset management industry since 1996. Prior to joining Mirabaud Asset Management in 2013, Andrew was Head of High Yield Portfolio Management at Aviva Investors. He has managed High Yield funds at Merrill Lynch Investment Managers, where he was responsible for High Yield in London, and at F&C Investments, where he co-managed the institutional High Yield product. He also managed investment grade funds at IBJ Asset Management. Andrew has a history degree from the University of York, an M.B.A from the Booth School of Business at the University of Chicago and is a non-practicing barrister.
Fatima Luis, Senior Fixed Income Portfolio Manager
Fatima joined Mirabaud in June 2013 from F&C where she spent 14 years managing high yield and credit retail funds including the F&C Strategic Bond Fund as well as helping to oversee the institutional global yield mandates totalling approximately $1billion in assets. Fatima started her investment career in 1996 working in EM corporate debt before moving to Royal and Sun Alliance in 1998 to help develop the credit and high yield retail proposition. Fatima has a degree in International Relations from Wheaton College, Massachusetts and an MSc from the London School of Economics.