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ii Super 60 - GAM Star Credit Opportunities £

ii Super 60 investments

ii Super 60 investments:
GAM Star Credit Opportunities £

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Asset Group Asset Sub-Group Investment Category
Fixed Income Sterling bonds Smaller company

Selection rationale:
The fund currently yields 3.4% and may be a good option for investors who target a stable income. Atlanticomnium is an independent Geneva-based fund management company that has specialised in credit investing since it was founded in 1976, and runs the fund for GAM. Managers Anthony Smouha, Grégoire Mivelaz and Patrick Smouha aim to provide investors with a high income, paid annually, from high-quality bonds.

They achieve this by lending to investment-grade companies, ideally for 10 years or more. Instead of buying their senior bonds, which are first in line for repayment if a company defaults on their debt, the managers opt for their junior or subordinate bonds. These tend to be slightly riskier than senior bonds because investors are further down the list to get their money back if a company goes bust. But the idea behind this fund is that investors get a higher yield without a corresponding increase in risk, because the managers invest only in quality companies.

They use top-down and bottom-up research to identify profitable, growing and cash-generative companies. They look for companies that are doing well, in the belief that they are unlikely to default on their debt commitments whether they are senior, junior or subordinate. They say this approach is more akin to an equity fund manager’s, because it means focusing on the health of the company rather than what would happen if something went wrong, as bond managers tend to.

September 2020

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Risk warnings

Past performance of the underlying constituents is not a guarantee of future performance. The value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. 

Annual performance can be found on the factsheet of each fund, trust or ETF. Simply click on the asset’s name and then the performance tab. 

The information we provide in the ii Super 60 investments list is an opinion provided by ii or one of its partners on whether to buy a specific investment. Please note that none of the opinions we provide are a “personal recommendation”, which means that we have not assessed your investing knowledge and experience, your financial situation or your investment objectives. Therefore you should ensure that any investment decisions you make are suitable for your personal circumstances.

If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial advisor. 

Any changes to the ii Super 60 investments list and the rationale behind those decisions will be communicated through the Quarterly Investment Outlook.

Details of all recommendations issued by ii during the previous 12 month period can be found here.

ii adheres to a strict code of conduct. Members of ii staff may hold shares in companies mentioned in the ii Super 60 investments list, which could create a conflict of interest. Any member of staff intending to complete some research about any financial instrument in which they have an interest are required to disclose such interest to ii. We will at all times consider whether such interest impairs the objectivity of the recommendation.

In addition, staff involved in the production of this ii Super 60 list are subject to a personal account dealing restriction. This prevents them from placing a transaction in the specified instrument(s) for five working days before and after an investment is included or amended and made public within the list. This is to avoid personal interests conflicting with the interests of the recipients of this ii Super 60 investments list.