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Data Funds
Fund performance
CLOs feel the heat from corporate long-short and ucits funds in July
Funds in July climbed back to a largely positive net return, as 94% broke into the black. This marks a return to a more broadly optimistic landscape, after the number of funds reaching positive figures dipped to 84% in June.
For the first time in 2024, CLO funds do not make up the majority of the top 10 in July. After a dominant Q1 and Q2, only four CLO funds feature in the month’s top 10. Instead, a more varied selection of funds take the spotlight. Corporate long-short, structured finance and ucits funds are all represented.
Alegra remains atop the overall 2024 table, reaching 19.33% after a strong 1.61% return for the month, whilst Spire retains second place for a third month in a row.
Creditflux index returns July (%)
Leading fund
Triple Opportunity Fixed Income Fund
Zurich-based Finanz Konzept claimed first place in July’s credit fund listing, as the firm’s Triple Opportunity Fixed Income Fund made 5.73%. This helps pull the fund’s year-to-date return to -10.75%, after the fund faced challenging market conditions in previous months.
Lars Oberle, CEO of Finanz Konzept, said: “This performance was largely driven by the strategic impact of interest rate cuts by both the European Central Bank (ECB) and the Swiss National Bank (SNB) in June. The ECB reduced its interest rate by 25 basis points to 4.25% effective 12 June, while the SNB cut its rate by 0.25 percentage points to 1.25%, effective from 21 June. These moves improved market sentiment and lowered borrowing costs, benefiting fixed income assets.”
He added: “In addition, the fund’s long position in the yen was a key contributor, as the Japanese yen outperformed all major currencies in July. This currency movement, coupled with the positive impact of interest rate cuts in Europe, underpinned the fund’s strong performance in July.”
Top credit funds in July (%)
Top fund vs corporate long-short cumulative returns (%)
*Data since fund inception (June 2011)
**Estimates
See hedge fund listing notes
