GAM Star Credit Opportunities (USD)

Despite a strong start to the month, the last week of February was marked by strong ‘risk-off’ sentiment activity due
to negative headlines on the Covid-19 coronavirus. The fund was not immune as reflected by a negative performance in the month. While we are monitoring the situation closely, we expect this to be credit neutral for the fund. Spreads on the USD-denominated subordinated debt of financials widened significantly during the month and we feel valuations are extremely attractive at the moment. The 10-year US rate fell significantly at the end of the month, following fears of the coronavirus. In this low interest rate environment, we feel the fund is well positioned by capturing spreads of more than 370 bps.

We are getting to the end of earnings season and we continue to observe strong operating performance and
what we regard rock-solid balance sheets. Overall, the tier 1 common capital (CET1) ratios of banks continue to increase, while non-performing
loans (NPLs) continue to decrease showing the strength of the financial sector and the results achieved by the multi-year regulatory process of capital strengthening. For insurers, we have also seen strong solvency ratios. For more details and specific examples please refer to the Spotlight section in this commentary.

The fund is well positioned to capture high and predictable income, in our view, and given the attractive valuation levels, we feel the fund has scope to benefitfrom further capital gains.

GAM Star Credit Opportunities (EUR)

Despite a strong start to the month, the last week of February was marked by strong ‘risk-off’ sentiment due to negative headlines on the Covid-19 coronavirus.The fund was not immune as reflected

by negative performance in the month. While we are monitoring the situation closely, we expect this exogenous event to be credit neutral for the fund. Spreads on the euro-denominated subordinated debt of financials widened significantly during the month. We feel valuations

are extremely attractive at the moment. The 10-year bund rate fell significantly
at the end of the month, following fears of the coronavirus. In this low interest rate environment, we feel the fund is well positioned by capturing spreads of more than 450 bps.

We are getting to the end of earnings season and we continue to observe strong operating performance and
what we regard as rock-solid balance sheets. Overall, the tier 1 common capital (CET1) ratios of banks continue to increase, while non-performing loans (NPLs) continue to decrease, showing the strength of the financial sector
overall and the results achieved by the multi-year regulatory process of capital strengthening. For insurers, we have also seen strong solvency ratios. For moredetails and specific examples please refer to the Spotlight section in this commentary

The fund is well positioned to capture high and predictable income, in our view, and given the attractive valuation levels, we feel the fund has scope to benefitfrom further capital gains.

GAM Star Credit Opportunities (GBP)

Despite a strong start to the month,
the last week of February was marked by a strong ‘risk-off’ sentiment due
to negative headlines on the Covid-19 coronavirus. The fund was not immune as reflected by a negative performance in the month. While we are monitoring the situation closely, we expect this to be credit neutral for the fund. Spreads on the GBP-denominated subordinated debt of financials widened significantly during the month and we feel valuations are extremely attractive at the moment. The 10-year Gilt rate fell significantly at the end of the month, following fears of the coronavirus. In this low interest rate environment, we feel the fund is well positioned by capturing spreads of more than 450 bps.

We are getting to the end of earnings season and we continue to observe strong operating performances and
what we regard as rock-solid balance sheets. Overall, the tier 1 common capital (CET1) ratios of banks continue to increase, while non-performing loans (NPLs) continue to decrease, showing the strength of the financial sector
overall and the results achieved by the multi-year regulatory process of capital strengthening. For insurers, we have also seen strong solvency ratios. For more details and few examples please refer to the Spotlight section in this commentary,

The fund is well positioned to capture high and predictable income, in our view, and given the attractive valuation levels, we feel the fund has scope to benefitfrom further capital gains.

  • Please read this important legal information before proceeding.

    Information contained herein are solely for the use of the person who has accessed this information and may not be reproduced or distributed, even partially, to any other person or entity.

    The material contained herein is confidential and intended solely for the use of the persons or entities with nationality of or respectively with their residence, domicile, registered office or effective administration in a State or Country in which distribution, publication, making available or use of the information is not contrary to applicable laws or any other regulation.

    The material contained herein is aimed at sophisticated, professional, eligible, institutional and/or qualified investors/intermediaries who have the knowledge and financial sophistication to understand and bear the risks associated with the investments described.

    The information is solely product-related and does not take into account any personal circumstances and does not qualify as general or personal investment recommendation or advice. In particular, the information is given by way of information only and does not constitute a specific legal offer for the purchase or sale of financial instruments. Moreover, nothing contained herein is constitutive of any tax advice.

    Every effort has been made to ensure the accuracy of the financial information herein but the information contained herein has not been independently reviewed or verified. Therefore, Atlanticomnium SA gives no assurance, express or implied, as to whether such information is accurate, true or complete and no responsibility is accepted by Atlanticomnium SA for any errors or omissions. Third-party content is the property of its respective provider or its licensor and is protected by applicable copyright law.

    Past performance is not indicative of future performance. The price of shares/units and the income from the funds/trusts can go down as well as up and may be affected by changes in rates of exchange or financial markets fluctuation, out of the scope of Atlanticomnium SA.

    To the fullest extent permitted by law, in no event shall Atlanticomnium SA or our affiliates, or any of our directors, employees, contractors, service providers or agents have any liability whatsoever to any person for any direct or indirect loss, liability, cost, claim, expense or damage of any kind, whether in contract or in tort, including negligence, or otherwise, arising out of or related to the use of the information provided.