Global credit funds & CLO's
November 2020
| Issue 229
Published in London & New York.
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November 2020 | Issue 229
Fund performance
Structured finance finds its footing with credit rally
For the first time this year we have seen a structured finance fund take the top spot, as Serone Key Opportunities Fund leads a multitude of other funds in this category in the top 10 of our monthly fund rankings. September was kind to funds in our structured finance category, as Pearl Vega Special Situations Credit, III Credit Opportunities and Altum Credit Master returned lifted themselves to 5.86%, -8.32% and -5.84% year-to-date.
Creditflux index returns September (%)
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Creditflux index returns August (%)
CLOs are part of this structured credit rally with CIFC CLO Opportunity Fund II entering the top 10 for a second month with a 3.87% gain.
However, the overall recovery for credit funds has plateaued; the number of funds that have reached positive year-to-date returns has only gone up by a single percent to 37% since last month. This slowdown is marked in the decline in positive monthly returns from 91% in August to 70% in September, as well as only 32% of all funds pushing above a 1% net return this month as credit spreads stabilised in September.
Leading fund
Serone Key Opportunities Fund
London-based Serone Capital Management topped the Creditflux tables this month with Serone Key Opportunities Fund, which returned 4.11% in September, bringing annualised returns since inception to 9.82%. The fund focuses on inefficient segments of the European structured credit market.
“We have continued to stay behind our investment methodology, taking advantage of mis-pricings in assets that are lagging the broader recovery, whilst selecting profiles that we believe offer robust fundamental protection,” a spokesperson for the London-based fund told us.
“Furthermore, we were able to execute event driven situations that unlocked positive total return for the month. Given current valuations, we believe that further upside is still possible despite the difficult macro back drop.
Top credit funds in September (%)
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Serone Key Opportunities Fund vs structured finance index (%)
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