GLG Asia Credit Opportunities

GLG Asia Credit Opportunities is an actively managed unconstrained fixed income strategy which primarily invests in credit markets across the Asia Pacific region. The strategy employs a rigorous credit research process and a dynamic investment approach with the aim of providing an absolute return to investors.
 
  • Aims to capture opportunities in an expanding but under-represented credit market.
  • Focused on attractive risk-adjusted opportunities by employing rigorous bottom-up credit analysis.
  • Fundamental views complimented by a top-down macro/policy framework which supports active selection of regions and sectors.
  • Managed by an experienced team with deep knowledge of Asian credit from top-tier investment houses and rating agencies since the 1990s.

Approach

The strategy takes a bottom-up approach in order to identify securities that demonstrate the best opportunities for generating risk-adjusted income and capital growth. This evaluation is based on quantitative and qualitative analysis using internally generated financial models and projections. The team’s bottom-up approach will be complemented by top-down macro and policy analysis, using a proprietary framework to support allocation decisions. This helps to limit downside volatility across the credit cycle and capture idiosyncratic alpha opportunities.

The team emphasises a rigorous credit review process, focusing on portfolio diversification, strict risk discipline and portfolio liquidity. A typical portfolio will comprise of 100-130 positions, predominantly investing in Asian corporate credit instruments but may also include sovereign and quasi-sovereign fixed or floating rate debt securities.

Whilst the strategy is benchmarked to the J.P. Morgan Asia Credit Index (‘JACI’) for performance comparison purposes, the team focusses on providing absolute returns to investors. An unconstrained approach enables the strategy to avoid beta-based risk profiles and target tactical, idiosyncratic opportunities, whilst avoiding unwanted country and sector risk concentrations that investors in the asset class might be wary of.

Investment Solutions

Man offers a comprehensive suite of investment solutions and formats that can be tailored and optimised to meet specific client needs. Our investment solutions offer optionality including: liquidity, control, investment restrictions, investor customisations and transparency.

UCITS
Alternative investment funds
US 40 ACT
Regional funds
Separate accounts
Advisory mandates
Managed accounts

Access to investment products and mandate solutions are subject applicable laws and regulations including selling restrictions and licensing requirements. Investment solutions listed above may not be compatible for all investment strategies and may be subject to minimum subscription requirements. Regional Funds: In additions to UCITS and AIFs registered across the EEA, a number of investment strategies are available in vehicles registered in Chile, Netherlands, Hong Kong, Japan, Singapore, South Korea and Switzerland.

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Considerations

Investment Objective Risk - There is no guarantee that the Strategy will achieve its investment objective.

Market Risk - The Strategy is subject to normal market fluctuations and the risks associated with investing in international securities markets and therefore the value of your investment and the income from it may rise as well as fall and you may not get back the amount originally invested.

Counterparty Risk - The Strategy will be exposed to credit risk on counterparties with which it trades in relation to on-exchange traded instruments such as futures and options and where applicable, ‘over-the- counter’("OTC","non-exchange") transactions. OTC instruments may also be less liquid and are not afforded the same protections that may apply to participants trading instruments on an organised exchange.

Currency Risk - The value of investments designated in another currency may rise and fall due to exchange rate fluctuations. Adverse movements in currency exchange rates may result in a decrease in return and a loss of capital. It may not be possible or practicable to successfully hedge against the currency risk exposure in all circumstances.

Liquidity Risk - The Strategy may make investments or hold trading positions in markets that are volatile and which may become illiquid. Timely and cost efficient sale of trading positions can be impaired by decreased trading volume and/or increased price volatility..

Financial Derivatives - The Strategy may invest in financial derivative instruments ("FDI") (instruments whose prices are dependent on one or more underlying asset) typically for hedging purposes. The use of FDI involves additional risks such as high sensitivity to price movements of the asset on which it is based. The use of FDI may multiply the gains or losses.

Leverage - The Strategy's use of FDI may result in increased leverage which may lead to significant losses.

Emerging Markets - The Strategy may invest a significant proportion of its assets in securities with exposure to emerging markets which involve additional risks relating to matters such as the illiquidity of securities and the potentially volatile nature of markets not typically associated with investing in other more established economies or markets.

Non-Investment Grade Securities - The Strategy may invest a significant proportion of its assets in non-investment grade securities (such as “high yield” securities) are considered higher risk investments that may cause income and principal losses for the Strategy. They are instruments which credit agencies have given a rating which indicates a higher risk of default. The market values for high yield bonds and other instruments tend to be volatile and they are less liquid than investment grade securities.

Single Region/Country Risk - The Strategy is a specialist country-specific Strategy or focuses on a particular geographic region, the investment carries greater risk than a more internationally diversified portfolio.