Alexander Credit Opportunities Fund
The Fund aims to achieve positive returns in rising and falling markets as well as above the Fund Benchmark by identifying opportunities that offer attractive risk-adjusted returns.
The Fund was launched in October 2009 and seeks to outperform the Fund Benchmark through an active management approach that focuses on identifying opportunities in the Australian and global credit markets. The recommended investment horizon for investors in the Fund is three to five years.
The Fund has the ability to invest in all forms of fixed income securities, but its focus is on the credit markets, which are part of the fixed income asset class.
The Fund can invest in the full spectrum of fixed income products that include, but are not limited to: corporate bonds; corporate debt; bank bills; commercial paper; loans; hybrid securities; unit trusts, mortgage-backed securities; asset-backed securities; structured credit securities; credit and other derivatives and credit linked notes; and convertible, preference and ordinary shares.
The Fund aims to achieve positive returns in both rising and falling markets as well as a rate of return above the Fund Benchmark.
The Investment Strategy of the Fund is based on locating opportunities within the credit markets that offer attractive risk-adjusted returns.
The Investment Manager employs a relative value investment approach that compares the risk-return profiles of different investments within the credit markets to identify opportunities for the Fund.
The portfolio management methodology combines a top-down macro framework with a bottom-up selection process. The top-down approach originates with the Investment Committee, which includes senior executives of Alexander Funds and independent members including the chairperson.
The Investment Committee sets the maximum risk allowable by the Fund at the Fund’s portfolio level, the regional level and on a sector-by-sector basis. The Investment Committee is mandated to take a medium to long-term outlook for all risk factors that will affect the Fund.
The bottom-up process is applied to both single credit exposures and pooled investments. Analysis of single credit exposures involves understanding the credit risk of the issuer as well as considering the appropriate terms of the investment.
For securitisation arrangements, the credit process applies both a qualitative and quantitative assessment of three broad elements of each security: structure; collateral quality; and the role or participation of third parties in the transaction.
As the credit markets are primarily over-the-counter markets, they are often opaque and can be driven by technical factors (such as short-term supply versus demand differences), which can lead to inefficiencies and mispricing of risk. With an extensive network of relationships, the Investment Manager believes it is able to obtain a clearer picture of the credit markets. Drawing on the significant experience of its team in managing all types of fixed income securities and operating in both stable and volatile market conditions, the Investment Manager seeks to identify and take advantage of such inefficiencies and mispricing in the credit markets.
The Fund’s investment preferences will be oriented towards opportunistic investments in the credit markets that generate a cash yield, as well as potentially generating capital appreciation, and potential profit-taking as a result of the mispricing of such investments in the market.
As at 31 October 2023
As at 31 October 2023
The Alexander Credit opportunities fund has an absolute return target above the benchmark in both rising and falling markets. The benchmark is the Bloomberg AusBond Bank Bill Index +2%.
Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the Alexander Credit Opportunities Fund (ARSN 156 026 514). Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT) and is the Responsible Entity.
This infomration has been prepared by Alexander Funds Management Pty Ltd ("AFM") to provide you with general information only. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not act on a recommendation or statement of opinion without first considering the appropriateness of the general advice to your personal circumstances or consulting your investment advisor to determine whether the recommendation or statement of opinion is appropriate for your investment objectives, financial situation or needs. Neither AFM, Equity Trustees nor any of its related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the relevant Product Disclosure Statement before making a decision about whether to invest in any product.
Alexander Funds is a boutique Australian fund manager that specialises in the fixed income credit markets. The business was established in 2009 and aims to provide its clients with stable returns and consistent distributions through investing in a portfolio of fixed income assets.
Alexander Funds has a proven track record of providing its clients with access to opportunities in the fixed income credit markets that they are not able to access directly or through other funds. It invests alongside its clients in every fund that it manages which adds to the level of trust that it has developed with its clients.
The Alexander Funds investment team has decades of experience in the global fixed income credit markets and have experienced managing credit portfolios through a number of business and economic cycles. This gives it the capabilities and the confidence to be able to identify the best relative value credit products in all types of markets.
Rachel is the Chief Operating Officer of Alexander Funds. Rachel has been working in fixed income markets for over 20 years. Prior to joining Alexander Funds, Rachel was Vice President, Fixed Income with Lehman Brothers where she managed a portfolio of institutional investors’ money within the Australian market. Other roles she has held include Manager with West LB in London and Senior Dealer, Fixed Interest with Westpac Banking Corporation. Rachel holds a Bachelor of Laws and a Bachelor of Economics from Monash University.
Chris is the Managing Director of Alexander Funds and the primary Portfolio Manager of the Fund which comprises the majority of his time. Chris has more than 25 years of experience in the global fixed interest markets. he was Vice President of TD Securities in Toronto, Canada, where he operated a credit trading operation covering North American credits. he joined Development Bank of Singapore in 2002 as Senior Vice President where he ran North American and European Credit Trading before moving back to Australia in late 2006 with Challenger Financial Services. Chris founded Alexander Funds Management (previously Laminar Funds Management) in May 2009. Chris holds a Bachelor of Economics (honours) from Monash University.
Adam joined Alexander Funds Management in 2019. He has more than 15 years of portfolio management experience, with 10 of those as a senior portfolio manager within the credit markets. Previously, Adam acted as a Senior Portfolio Manager at VFMC managing their directly invested credit portfolio. He has experience in managing assets across multiple security types, including bonds, loans, structured credit and credit derivatives. Adam is a CFA charterholder and has a Bachelor of Business from Swinburne University.
Relevant Documents
You should read the PDS, TMD (if applicable) or any Investment Memorandum (or other offer documents) related to this product before making an investment decision. These documents (if available) can be found at https://www.alexanderfunds.com.au/, or if this is a "wholesale investor only" investment, can be viewed by contacting the Product Issuer identified on the aforementioned website.
Statutory Statement
The issuer of this product is identified at the top of this page. The PDS and target market determination for the product are available in the Documents section of this listing. Prospective investors should consider the PDS before deciding to acquire the product. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
General Disclaimer
IMPORTANT STATEMENT ABOUT YOUR USE OF THIS SITE
Information on this site is intended for Australian users only.
This site is operated by Investment Markets (Aust) Pty Ltd. (ACN 634 057 248) (IMA, we, us and our), the holder of Australian Financial Services Licence (AFSL) no. 527875. The content is provided solely for information purposes, is not a recommendation or an offer to buy or sell a security, and is not warranted to be correct, complete or accurate. To the extent permitted by law, neither IMA, its affiliates, nor the content providers (such as the issuers of securities who appear on the site) are responsible for any investment decisions, damages or losses resulting from, or related to, the content, data and analyses or their use. The investment products on this site and any statements made about them by their issuers are not vetted, verified or researched by IMA. The presence of an investment product on this site should not be interpreted as an implied endorsement of it by IMA. Certain content provided may constitute a summary or extract of another document such as a Product Disclosure Statement. To the extent any content is general advice, it has been prepared by IMA. Any general advice has been provided without reference to your investment objectives, financial situations or needs. For more information refer to our Financial Services Guide. To obtain advice tailored to your situation, contact a financial advisor. You should consider the advice in light of these matters and, if applicable, the relevant Product Disclosure Statement (or other offer document) before making any decision to invest. Past performance does not necessarily indicate an investment product’s future performance. The content is current as at date of initial publication and may not be current as at your date of viewing. For a more complete understanding of all the terms and conditions of your use of this site click here.