“The Dynamic Credit Defensive Strategy Fund provides the cornerstone for every fixed income portfolio”
Dynamic Credit Defensive Strategy Fund launched
AMSTERDAM, 22 June 2017
Dynamic Credit Funds ICAV, the Irish fund umbrella, has received an AIFM license by the Central Bank of Ireland and has launched its first fund: the Dynamic Credit Defensive Strategy Fund. Dynamic Credit, the alternative fixed income asset management and direct lending firm, will manage the fund based on its successful Defensive strategy, which invests in highly diversified loan portfolios through secured bonds, with low interest rate risk. The strategy has a solid track record of over 5 years, and a target return of 3 to 6% annually.
The Defensive Strategy Fund invests mainly asset-backed securities, with low interest rate risk, due to the floating rate nature of most of the bonds. The investment philosophy is one of value investing in fixed income, with a defensive profile. The strategy is delivering an attractive and sustainable yield, and has a solid track record of over 5 years. The strategy has an annualized return of 8.7% since inception.
The character of the investment (exposure to a highly diversified pool of loans, the secured nature through proper collateral, low interest rate risk) make the Defensive Strategy Fund the cornerstone for every fixed income portfolio.
Since spread is a scarce commodity in the current markets, and it cannot be predicted whether current spread levels will continue, Dynamic Credit believes it is only fair that the management fee for the fund is linked to the actual return the investor makes. The fund therefore innovatively charges a management fee of 10% of the 12-month trailing performance with a floor of 0.25% and a cap of 0.75 % (on an annual basis).
Mike Li, Portfolio Manager of the Defensive Strategy Fund, commented: “The Defensive Strategy Fund offers significant additional spread with little to no interest rate risk which make it an indispensable part of every fixed income portfolio. The perceived complexity and relative illiquidity premia generate a sustainable spread without adding credit risk. The level of credit risk is low due to the secured nature of the bonds and our rigorous stress testing based on actual worst case historical performance of underlying loan risk.”
For further information, please contact:
T: + 31 20 794 6059
About Dynamic Credit
Dynamic Credit is an asset management and direct lending firm specialising in ‘alternative’ fixed income. Founded in 2003, Dynamic Credit has offices in Amsterdam, New York and Jakarta. Dynamic Credit is active across the globe and works for a variety of clients, including pension funds, insurance companies, banks, private equity firms, wealth managers and governments.
Our mission is to create a better match between savings and credit for a more prosperous society. Dynamic Credit is seen as innovative, is growing fast and is trying to understand complexity by making it transparent. Clients choose Dynamic Credit because we give them deep insight and make them truly understand the opportunities in alternative fixed income.
The teams of experts of Dynamic Credit are active in asset management, direct lending and advisory services. In addition Dynamic Credit has set up the first online mortgage distribution platform in the Netherlands (bijBouwe).
For more information: www.dynamiccredit.com
 This rate of return is an annualized rate over the period January 2012 – March 2017 before fees and including cash account of a managed account with a similar strategy as the fund.
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Investing entails risks, including possible loss of principal. No representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided. No assurances or guarantees are given regarding the performance of any investment. Past performance may not be repeated and should not be seen as a guide to future performance. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. Exchange rates may cause the value of overseas investments and the income arising from them to rise or fall. The levels and bases of and reliefs from taxation may change. Any tax reliefs referred to are those currently available and their value depends on the circumstances of the individual investor. Investors should consult their own tax adviser in order to understand any applicable tax consequences. Materials relating to the investments should be read in conjunction with a prospectus that describes charges, expenses, and risks. Read it carefully before any investment.
The information contained in this publication (including any expression of opinion or forecast) has been obtained from, or is based on, sources believed by Dynamic Credit and its associated companies to be reliable, but are not guaranteed as to its accuracy or completeness. Such information is provided without obligation and on the understanding that any person who acts upon it or changes his investment position in reliance on it does so entirely at his own risk. Information posted in this publication is current only as at the date it is first posted and may no longer be true or complete when viewed by you. All information contained in this publication may be changed or amended without prior notice although neither Dynamic Credit and nor any of its associated companies undertakes to update it regularly.Authorisation of the Fund by the Central Bank of Ireland is not an endorsement or guarantee nor is the Central Bank of Ireland responsible for the contents of the prospectus. Authorisation by the Central Bank of Ireland shall not constitute a warranty as to the performance of the Fund and the Central Bank of Ireland shall not be liable for the performance or default of the Fund.