03 Feb 2025
Every month we study the universe of funds in the investment marketplace to assess whether they meet our exacting standards and should be given the RSMR seal of approval.
Here are the new rated funds from our January review:
The Muzinich Global Short Duration Investment Grade Fund is a prudently managed investment grade strategy which focuses on investment grade rated corporate bonds issued by companies in the US, Europe and emerging markets. It is managed by Tatjana Greil-Castro and Ian Horn and supported in credit selection by an experienced global team of 27 credit analysts, specialised by industry and geography.
Muzinich’s investment process is credit-intensive, disciplined, and time-tested to produce low default rates over several market cycles. The investment process begins with a top-down approach. Monthly Asset Allocation Group (AAG) meetings bring together portfolio managers and analysts to score asset classes like US and European investment grade and high-yield bonds based on fundamentals, valuations, and technical factors. This relative value analysis informs the fund’s asset allocation and currency exposures. For example, overweight positions in European investment grade bonds were adjusted as spread premiums narrowed. Currency allocations, typically split 50/50 between US dollars and euros/sterling, are guided by hedged yield opportunities. This top-down framework establishes parameters for bottom-up security selection. Sector specialist analysts recommend individual securities based on their fundamental research, ensuring alignment with broader asset allocation views. Diversification across issuers, sectors, and geographies is prioritised to manage volatility and mitigate risk. Portfolio constraints include a maximum average duration of 1.5 years, a minimum average rating of Baa2/BBB, a 5% cap on high-yield bonds, and a 15% limit on emerging market exposure in hard currency.
RSMR provides impartial, qualitative, forward-looking research for advice businesses.
Click here to find out more about RSMR research and to access RSMR fund ratings, fund profiles, factsheets, insights, market updates and event information.
This information is for UK Professional Advisers only and should not be given to retail clients.
The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.