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Data Funds
Fund performance
Mixed month for CLO funds mars credit’s positive start to 2026
Most categories in Creditflux’s fund index displayed positive performances in January. Corporate distressed turned around its bottom-of-the-table showing in December to top the category rankings for the third time in four months.
CLO funds had a mixed start to the year. This category was the only one in the index to lose ground. More than half of CLO funds posted declines in January, with the category averaging a return of -0.52%. A notable struggler was Oxford Gate Master Fund. It declined more than 8%.
As well as corporate distressed, which was buttressed once again by a strong performance from Pictet Alt’s Distressed & Special Situations fund, emerging markets also had a good month, yielding an average return of 0.9%.
Diversity was again evident in the top 10. The table includes representation from eight of the categories making up the index.
Creditflux index returns January (%)
Leading fund
Pictet Alt Distressed & Special Situations
After being crowned the strongest performer for cumulative returns among funds tracked by Creditflux in 2025, Pictet Alt’s Distressed & Special Situations fund continued its excellent run into January, with a return of 4.15%.
For the five months between September and January inclusive, the fund averaged a monthly return of 3.23%, helping boost its 12-month return to 23.12% — comfortably clear of Hildene Opportunities Fund and Advent Global Partners UCITS Fund, the two closest challengers in that metric.
Last year, Pictet’s Distressed & Special Situations fund recorded a total return of 19.36%. Since its inception in December 2019, it has delivered an annualised return of 10.99%.
The euro-denominated fund mainly invests in a broad range of corporate financial and government bonds, including securities and loans from issuers that have failed to make scheduled payments or are in, or near, bankruptcy. It mainly invests in Europe and can invest across any sector, credit quality and currency.
Top credit funds January (%)
Pictet Alt – Distressed & Special Situations vs corporate distressed cumulative returns (%)
*Estimate
See hedge fund listing notes
