InvestmentsFeb 7 2019

GAM launches systematic credit fund

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GAM launches systematic credit fund

GAM has launched a dynamic credit strategy product for advised clients.

The fund will aim to have a low correlation with more traditional credit markets and can take both long and short positions.

A credit strategy is an actively managed strategy that allows clients to invest in certain credit sectors of the investment grade taxable bond market.

A long position is an investment that aims to profit from the value of an investment rising, while a short position aims to profit from a fall in the value of an asset.

Anthony Lawler, co-head of GAM Systematic, the division responsible for the new product, said: "Investors are increasingly looking for diversifying investments for their portfolios.

"The dynamic credit strategy meets this need. It offers credit returns, but is also equipped with crisis indicators which seek to reduce portfolio credit risk in challenging markets and thereby diversify returns away from traditional credit allocations."

Patrick Connolly, head of communications at advice firm Chase De Vere said: "Fixed interest plays an important role in many investment portfolios as it can provide income, capital protection and diversification from equity markets.

"However, many fixed interest assets look expensive and so adopting a flexible approach with experienced managers or processes could be the best strategy, which is why we favour strategic bond funds.

"This new fund is dynamic and flexible and could perform well, although most advisers will want to see the process in action, and have a full understanding of the likely risks, before considering investing."

david.thorpe@ft.com