The Ireland-domiciled Ucits strategy seeks the best credit investments across global public fixed income markets, achieved through assessment of relative value across rating, duration and geographic spectrums, coupled with fundamental bottom-up analysis of investment grade and high yield corporate bonds and corporate loans.
As an absolute return strategy, capital preservation is key in falling markets with McEachern free to use hedging techniques to help reduce short-term volatility during periods of rising interest rates or spread widening.
McEachern, who also runs Muzinich Credit Opportunities Fund launched at the start of 2013, stressed he constantly assesses the relative value of sectors, spreads, yields, returns and volatility and adjust portfolios as risk/reward profiles change.
“The prospect of rising interest rates has prompted demand for nimble, multi-asset fixed income strategies as a complement to more traditional investments,” he said.
“We believe the Global Tactical Credit Fund can deliver meaningful long-term returns throughout a market cycle and crucially, we have the investment flexibility and hedging tools to provide a measure of portfolio protection as we navigate through a period of potentially rising interest rates.
“We can do this by moving in and out of global credit sectors, as well as up and down the credit quality and duration spectrum, as different fixed income assets move in and out of favour.”
It has been a busy Q4 for Muzinich – last month it launched Emerging Markets Short Duration Bond Fund for Warren Hyland and Christina Bastin.