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Tailored for investment professionals this site provides information on our products, strategies and services. Please remember capital is at risk and past performance is not a guide to the future. We use cookies to ensure that we give you the best experience on our website. This includes cookies from third parties. Such third party cookies may track your use of our website. By continuing you are confirming that you are happy to receive all cookies on our website. Please refer to our Cookie Policy for further information, including steps to take to disable cookies.

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Investec Multi-Asset Credit

Dynamic. Diversified. Defensive

Investec Multi-Asset Credit

Investors wishing to tap into the highly diverse investment credit universe face an array of choices. We think three key ingredients make our strategy stand out from the crowd.

Jeff Boswell

Jeff Boswell

Co-Portfolio Manager

Garland Hansmann

Garland Hansmann

Co-Portfolio Manager

Tim Schwarz

Tim Schwarz

Co-Portfolio Manager

  • 1. Genuinely dynamic

    It’s no use having a great tool-kit if you only use a few items in it. Just as the market environment changes, so should your portfolio. What represents the best value investment choice today may be very different tomorrow, so dynamism is vital. And for our team, dynamism is more than a buzz word; it’s a daily philosophy.

    As the chart below proves, the team is not afraid to change the make-up of the overall portfolio if they believe that will deliver what our pension clients need. This can mean completely divesting from areas that become over-priced or too risky, while being unafraid to invest significant amounts of capital in compelling opportunities.

    We have a highly experienced and skilled team. We trust in their conviction, so we give them full flexibility. And they use it. Confidently and wisely.

    A truly dynamic portfolio that can evolve and adapt to market conditions, risk premia and liquidity

    Flexible and active across credit segments

    Source: Investec Asset Management, 30 September 2019. ​
    Since inception date: 01 January 2016. ​
    The portfolio may change significantly over a short period of time.

  • 2. Full diversification

    We know that to create a smoother investment journey and competitive risk-adjusted returns we need to think big in terms of the opportunity set. The wheel below shows the wide variety of tools in our investment tool-kit. It spans the more familiar and traditional security types to more complex areas of the market – where opportunities are compelling but deep expertise is vital. Our experienced team is adept at knowing which to employ at each point in time.

    An unconstrained approach to investing, targeting the most efficient allocation of capital across the global credit universe.

    Multi-Asset Credit

  • 3. Defensive, when it matters

    This 'all weather' strategy aims to deliver resilient returns in a changing credit landscape.

    Our focus is on capturing the upside of credit markets when opportunities are plentiful and spreads have widened out (for example in 2016) and acting more defensively to protect investor capital in more challenging environments (for example in 2018 where the strategy generated a positive return when HY and IG were negatively returning markets).

    Performance attribution by asset class​

    Performance attribution by asset class​s

    Past performance is not a reliable indicator of future results, losses may be made.​

    YTD performance is calculated using a geometric compounding methodology. Performance is gross of fees (returns will be reduced by management fees and other expenses incurred), income reinvested, in USD.
    Source: Investec Asset Management, 30 September 2019.

    Additionally, and unlike most fixed income strategies, we are not reliant on rate calls and have a very low sensitivity to interest rates. We do not believe rate calls are a sustainable source of alpha, preferring a preference for strong bottom-up credit selection by identifying attractive individual opportunities over time and avoiding defaults.

Why invest in Multi Asset Credit?

Resilient returns
Most global investors are focused on maximising returns, but only for a desired level of risk. Multi-Asset Credit strategies can meet investors’ needs by capturing returns when opportunities are plentiful, while aiming to protect investor capital in more challenging environments, thereby providing compelling risk-adjusted returns vs. single credit asset classes.

Dynamism is key
The divergence in individual credit market technicals, fundamentals and valuations materially influence the attractiveness of each sub-credit asset class at different times, allowing for dynamic credit asset allocation to help enhance and protect returns.

Broad opportunity set, better outcome
As the drivers of credit markets change and evolve from day to day, having a wide opportunity set and using it to position for the relevant market environment is vital. This diversification of return sources and selecting only the investment team’s best ideas in individual markets can lead to compelling upside and downside capture.

Video series:

General risks:
The value of investments, and any income generated from them, can fall as well as rise. Where charges are taken from capital, this may constrain future growth.
Past performance is not a reliable indicator of future results. If any currency differs from the investor's home currency, returns may increase or decrease as a result of currency fluctuations.
Investment objectives and performance targets may not necessarily be achieved, losses may be made.

Specific risks:
Default: There is a risk that the issuers of fixed income investments (e.g. bonds) may not be able to meet interest payments nor repay the money they have borrowed. The worse the credit quality of the issuer, the greater the risk of default and therefore investment loss.  Derivatives: The use of derivatives may increase overall risk by magnifying the effect of both gains and losses leading to large changes in value and potentially large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss. Interest rate: The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise. Liquidity: There may be insufficient buyers or sellers of particular investments giving rise to delays in trading and being able to make settlements, and/or large fluctuations in value. This may lead to larger financial losses than might be anticipated. Loans: The specific collateral used to secure a loan may decline in value or become illiquid, which would adversely affect the loan’s value. Many loans are not actively traded, which may impair the ability of the Portfolio to realise full value in the event of the need to liquidate such assets.