Fund performance

CLO funds are hot in summer as they take nine spots in top 10

CLO funds took the lead through summer as the returns of the category index reached 1.88% and 3.18% in June and July, respectively. Both months saw a CLO fund as the top performer — Sound Point Meridian in June, and Oxford Gate Master Fund in July.

Creditflux index returns July (%)

July turned out to be a strong month overall, as 92% of funds made a positive return; only distressed funds struggled to keep up, as the index hit -0.94% for that area after a tough summer.

The strengths of the CLO asset class shone through in the top 10 performing funds in July. Nine of the top 10 were CLO funds — and the other (CIFC Global Floating Rate Credit Fund) is a ucits fund which invests in “investment grade and non-investment grade rated debt tranches of CLOs”.

As of July, Axiom retains the YTD top spot at 25.65%, but two Crystal Fund vehicles are close behind, on 22.75% and 21.39%, respectively.

Leading fund

Oxford Gate Master Fund

Oxford Funds took the top spot for July, as the CLO fund hit a 7.72% return after a fruitful summer. The Connecticut-based firm also reached the 90th percentile of our YTD figures, returning 16.29% so far in 2023.

Jonathan Cohen, CEO at Oxford Funds, said: “We are pleased to have positioned the Oxford Gate portfolio to benefit from the current market environment.

“We remain enthusiastic about the diverse set of CLO investment opportunities that we continue to see.”

The fund has a particular focus on US CLO equity and junior debt tranches, as well as US CLO warehouse equity investments.

Top credit funds in July (%)

Oxford Gate Master Fund vs CLO funds cumulative returns (%)

*Data since fund inception (Nov-2018)

See hedge fund listing notes

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Global credit funds & CLO's

September 2023 | Issue 257

Published in London & New York.