MULTI-ASSET CREDIT: Muzinich Global Tactical Credit Fund

Why Mac?

MAC strategies seek to offer several benefits for investors looking to diversify their credit exposure. They access a broad opportunity set across the US, Europe and emerging markets in investment grade, high yield bonds, and loans to increase the potential to generate risk-adjusted returns.

Enhance Risk/Return Profile
Protect from Drawdowns/Allocate to Opportunities
Reduce Volatility

When to Access the Opportunity?

A MAC strategy offers investors a way to generate potentially attractive returns across the credit cycle. Even during challenging credit markets, it’s a way to stay prudently invested; it may provide moderate levels of return yet has the flexibility to position or reposition for a variety of potential risks.

The various components of the fixed income markets behave and interact differently throughout the credit cycle, so an active and tactical MAC strategy seeks to take advantage of dislocations and opportunities across the diverse set of sub assets classes, geographies and sectors.

1 Europe
Since the crisis of 2007-2008 and the Euro Sovereign crisis of 2011-2012, this region has recovered well across the economic and political landscape, and now boasts a stronger regulatory and institutional framework with more developed financial markets.

2 Investment Grade Bonds
The fastest-growing segment of the bond market is for BBB rated companies. We believe it often offers better return potential given the greater chance for excess spread compression dependent on the economic cycle, as well as the potential for upgrades.

3 High Yield Bonds
These companies tend to have less sensitivity to interest rate rises, shorter duration, and a low correlation to government bonds and investment grade companies.

4 Emerging Markets
Companies tend to have lower leverage and more cash than their developed markets peers. We consider emerging markets to be one of the best coupon asset classes.

5 Syndicated loans
Seek to provide investors with protection from rising rates and so tend to enjoy inflows in periods of rising rate expectations.

6 US
We expect the net result of US fiscal reforms to be favourable for credit markets based on a positive impact on earnings and reduced bond market supply.

MAC Strategies at Muzinich – Investment Process

We believe a thoughtful and disciplined investment process combines top-down credit themes with a deep bench of global credit research to help promote a repeatable and consistent outcome.

The top-down macro views are refined within the Firm’s Asset Allocation Group (AAG) to meet the strategy’s risk parameters. Our rigorous bottom-up credit research identifies the strongest credits, that undergo a relative value screen seeking the ‘Best Ideas’ for the portfolio.

MAC Strategies at Muzinich – Investment Process

Investment Team

A team approach is key to delivering a successful MAC strategy and is also the way our portfolios are managed. The MAC Tactical Credit strategy is managed by a dedicated team of 7 portfolio managers lead by Mike McEachern.

Michael McEachern

Lead Portfolio Manager

39 Years of corporate credit experience
Portfolio Positioning / Risk Management

Brian Nold

Portfolio Manager

23 Years of corporate credit experience
Portfolio Positioning / US High Yield

Warren Hyland

Portfolio Manager

27 Years of corporate credit experience
Portfolio Positioning / Emerging Markets

Supported by our Broader Markets Investment Team

7
Portfolio Managers (28y avg exp)

26
Research Analysts (16y avg exp)

6
Credit Traders (23y avg exp)

10
Risk Professionals (18y avg exp)

as of November 30, 2023

Focus Fund - Muzinich Global Tactical Credit Fund

The Fund celebrates 10 years in which the investment team has delivered strong and steady returns.

The Global Tactical Credit Fund seeks to provide the opportunity to ‘go anywhere’ in credit markets but with contained volatility.

Alpha generated by credit sub asset class and sector allocation, credit selection and duration management.
Combines top-down and bottom-up analysis.
Seeks to limit volatility to 5% over a market cycle.

Fund Details

Fund Calendar Year Performance

Past performance is not a reliable indicator of current or future results

Source: Muzinich as of September 30, 2023. For the USD Income F share class which is the longest running share class. Founder share class is not opened to new investment. Gross performance does not account for the effects of fees and other charges associated with investment, which would reduce the values shown. Net performance is net of all fees and expenses. The returns of any investment may increase or decrease as a result of currency fluctuations. Index performance is for illustrative purposes only. You cannot invest directly in an index. Inception date: November 2013.

Related Literature

Insights

Podcast | November 7, 2023

Podcast - Muzinich Global Tactical Credit Strategy reaches 10 Year Anniversary

Muzinich's Co-Head of Public Markets, Mike McEachern gives an update on the Global Tactical Credit Strategy as it reaches its 10 year anniversay in our latest 3 Under 5 Podcast.

Insight | July 6, 2023

Where Are We in the Credit Cycle?

While credit markets have performed relatively well year to date, the macroeconomic backdrop, inflation and the reaction function of central banks remains uncertain. Mike McEachern discusses his thoughts on the key macro themes influencing credit markets and how he is positioning his multi-asset credit strategies to navigate this uncertain environment.

Snapshot | July 11, 2024

Muzinich Asset Allocation Group Monthly Update - July 2024

Please click to watch our latest Asset Allocation Group video update for the month of July 2024.

Multi Asset Credit – Creditable, Tactical, Dynamic

Why Mac?

When to Access the Opportunity?

MAC Strategies at Muzinich – Investment Process

Investment Team

Focus Fund - Muzinich Global Tactical Credit Fund

Insights