The focus on company resilience has meant they have not had to change the shape of the portfolio, and only one issuer of the 73 currently in their portfolio, was at a high risk of default.
Examples of that resilience include holding Enviva, which produces wood pellets used for power generation – which has its future secured through long-term contracts – or Herbalife, a direct seller of nutritional products, which has seen record volumes due to an increasing focus on health from customers.
The proof is in the performance, with the fund top of its peer group over ten years, returning 87.15 per cent compared with a sector average of 59.51 per cent. Over five years it has returned 23.6 per cent, compared with a sector average of 15.9 per cent.
It has a distribution yield of 4.7 per cent and is also attractively priced with an ongoing charges figure of 0.37 per cent.
Darius McDermott is managing director of FundCalibre