Outlook – Q1 2021 EUR

by | Apr 9, 2021 | Analysis & Performance, EUR

From a credit standpoint, we have seen that financials post strong results given the circumstances. We saw capital and excess capital ratios actually increase during 2020. This means that we have strong visibility of the income on our securities. Moreover, we believe financials should be able to remain resilient even in a prolonged Covid-19 scenario, especially as fiscal policy is expected to remain accommodative. Additionally, due to our exposure to fixed-to-floaters and floaters, we are well-positioned for a period of rising rates. At the same time, we are capturing spreads of around 360 bps within the subordinated debt of financials. Unlike in other parts of bond market where spreads are near historical lows, valuations on subordinated debt of financials remain attractive and are significantly wider than pre-Covid-19. To summarise, our outlook remains positive, as the credit quality of the companies we hold remains strong. This ensures visibility of high income within the current low interest rate environment. At the same time, we have a low sensitivity to interest rates. Finally, valuations remain wider than pre-Covid-19 levels, and therefore the fund should benefit from potential price appreciation.

 

  • The Valuation date: December 20, 2024
    serieAsOFDateFKFundNameISINMTDMTDYTDYTDSISI
    120,241,220GAM Sustainable Climate Bond fundIE000BSJBO14-0.13-0.00130.06106.10-0.0136-1.36
    220,241,220GAM Star Crdt Ops EUR InvIE00B50JD3540.220.00220.117911.790.665866.58
    320,241,220GAM Star Crdt Ops GBP InvIE00B510J1730.320.00320.100910.090.942494.24
    420,241,220GAM Star Crdt Ops USD InvIE00B5769310-0.02-0.00020.09749.740.850485.04
    520,241,220GAM Interest Trend IncIE00BYM4P9130.420.00420.100110.010.386638.66

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