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Global credit funds & CLO's
November 2022 | Issue 250
Published in London & New York.
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November 2022 | Issue 250

Fund performance

Wake us up when September ends
After a resurgent August, credit markets hit a rough patch in September, with every Creditflux index posting negative returns, and only 12.9% of funds in our listings showing a positive return. CLOs were the worst performing category with an index return of -4.64%, as the Morningstar LSTA US Leveraged Loan Index sank to an average bid of 91.93 by the end of the month.
Creditflux index returns September (%)
index returns.svg
The top 10 table was an eclectic mix of funds that managed to keep their head above water and included seven different categories. Ayaltis’s credit funds of funds took the top two spots with 1.53% and 0.48%, with Hildene’s structured finance fund rounding out the top three at 0.39%, just pushing its year-to-date returns into positive territory.
Xaia Credit Debt Capital made a rare appearance for a Ucits fund in the top 10 — the fund returned 0.63% in September in a month where only 10.5% of Ucits funds made positive returns and the year-to-date index was still floundering at -6.65%.
Leading fund
Areca Value Discovery Fund
Zurich-headquartered Ayaltis topped the table in September with its credit fund of funds Areca Value Discovery Fund. The strategy returned 1.53% in a sparse month to push its year-to-date returns to 14.45% and its 12-month returns to 15.34%.
Areca aims for net returns of 5-8% over a 3-5 year period with a volatility below 5%. The fund targets a market-neutral profile with low correlation to equities, fixed income and commodities. The core part of the fund invests in specialised hedge fund strategies, such as relative value credit, event driven and distressed credit.
Launched in December 2008, the fund has so far met targets with a 6.54% annualised return since inception, and has remained relatively steady in a volatile year for credit funds, posting negative returns in only three months out of the last 12.
Top credit funds in September (%)
top credit funds.svg
Areca Value Discovery Fund vs Credit Funds of Funds cumulative returns (%)
*Data since fund inception (December 2008)
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