February 2021 | Issue 231
Fund performance
CLO funds keep up momentum as Napier Park finishes top
2020 ended with funds in our CLOs category taking the top few spots, continuing their streak from November when 70% of the top 10 belonged to the category. In fact, the best performer over the year was Napier Park Eton Fund which gained a whopping 29.49%.
Creditflux index returns December (%)
In December however, funds with more flexible mandates also performed well – three credit multi-strategy funds entered the top 10, two of which belonged to Zais. Three other funds joined them, III Credit Opportunities with 5.11%; Wasserstein Debt Opportunities with 4.1%; and Areca Value Discovery also with 4.1%.
December did not quite hit the highs of the previous month, but 92% of funds still posted positive returns. Two of the top performers in December also made it into the top 10 for overall performance in 2020; the month’s leading fund Flat Rock Opportunity Fund has reached 14.5%, and the leading US high yield fund, Wasserstein Debt Opportunities hit 16.39% in 2020.
Leading fund
Flat Rock Opportunity Fund
2020 has been rounded off with another CLO fund leading the performance figures. Flat Rock Opportunity Fund managed a 10.14% return despite the slow-down from November numbers. The fund’s 14.5% return over the course of 2020 places it seventh in our rankings.
The fund’s investment strategy focuses primarily on the equity and, to a lesser extent, junior debt tranches of cashflow CLOs. Shiloh Bates, managing director at Flat Rock, says “We saw some nice price appreciation in some discounted double Bs we bought earlier in the year, whilst our CLO equity positions traded up with the increase in the NAVs. The trend continued through January as well.”
The fund also had a strong 2019 - earlier this year it won “best CLO fund” at Creditflux’s first ever online manager awards ceremony.
Top credit funds in December (%)
Flat Rock Opportunity Fund vs CLOs cumulative returns (%)
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Global credit funds & CLO's
February 2021
| Issue 231
Published in London & New York.
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