Fact sheet: GAM Star Credit Opportunities £

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
STERLING BONDS
Sector
FO Fixed Int - GBP Investment Grade
Fund type
OEIC
Primary aim
INCOME
Why Money Observer Rates GAM Star Credit Opportunities £

Rated Fund 2016-2017. Taking advantage of higher yields on junior bonds

Winner of Money Observer's Best Larger Sterling Bond Fund award in 2015 and 2016, GAM Star Credit Opportunities £ aims to provide investors with a high income - currently 4.5 per cent, from high-quality bonds.

Managers Anthony Smouha and Gregoire Mivelaz admit that these two features sound contradictory because bond funds seeking to provide a higher income generally invest in higher-risk companies.

However, their approach is to lend to investment-grade companies, but instead of buying their 'senior' bonds, which are first in line for repayment if a company goes bust, he opts for their 'junior' or 'subordinate' bonds instead.

Their first step is to look for companies that are doing well and unlikely to default on their debt commitments, whether they are senior, junior or subordinate. Finding such companies and then investing in their junior debt means it is possible to get a much higher yield but with the same amount of risk as the senior debt.

They say this approach is more akin to an equity fund manager's approach because it means focusing on the health of the company rather than what would happen if something goes wrong, as bond managers tend to do.

They also cite the fact that GAM is a smaller player among bond fund managers as an advantage. This enables it to take advantage of smaller bond issues which often have higher yields but tend to be overlooked by larger investors because they need to buy in bulk. They also manage a US dollar Rated Fund on the same principles.

3 Year Performance
Fund Performance28.7%
Average of Rated Funds Group17.7%
Sector Performance10.8%
Fund information
Fund name
GAM Star Credit Opportunities GBP Inst
Fund manager company
GAM Fund Management Ltd
Fund type
OEIC
Fund managers
  • Gregoire Mivelazsince 31/07/2015
  • Anthony Smouhasince 11/07/2011
Accolades
Winner - Sterling Bond - Best Larger Fund 
Winner - Global Bonds - Best Larger Fund
Fund objective
To achieve capital gain in Sterling. The Fund seeks to achieve this objective through investment principally on a worldwide basis (up to 10% of net assets may be in Emerging Markets) in income bearing or accruing securities with fixed principal amounts including government bonds, corporate bonds, junior debt securities, preferred shares, convertible securities and contingent capital notes.
Benchmark
  • Barclays Sterling Aggregate Corporate Index
Investment style
Strategic Investment
Investment method
Fixed Interest
Quick stats
1 Year return
11.4%
1 Year rank in sector
1/17
Sector
FO Fixed Int - GBP Investment Grade
Yield
3.9%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
1.18%
Fund size
£1,092m (£452m last year)
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
24
Top in this sector
Fund name1 Year
GAM Star Crd Opp GBP11.4%
Sanlam Strategic Bond9.1%
Waverton Sterling Bond3.7%
BlackRock UKCrScreendFlex2.5%
MGI UK Bond2.2%
...more in FO Fixed Int - GBP Investment Grade

Performance snapshot

Holdings snapshot

  • UK70.5%
    Money Market10.7%
    Others9%
    Netherlands5.7%
    France4.1%
  • No data available.
  • UK Fixed Interest70.5%
    Money Market10.7%
    Global Fixed Interest9%
    Dutch Fixed Interest5.7%
    French Fixed Interest4.1%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-1.1%1.2%3.5%11.4%28.7%64%
Sector-2%-1.2%-1.9%2.4%10.8%23.8%
Rank within sector2 / 171 / 172 / 171 / 171 / 161 / 15
Quartile1st1st1st1st1st1st
Calendar performance
 YTD - 20182017201620152014
Fund-0.4%14.4%10.4%4.9%12.3%
Sector-2.2%4.6%9.1%0.7%7.9%
Rank within sector1 / 171 / 174 / 151 / 157 / 15
Quartile1st1st2nd1st2nd
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
7.7
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
0.47
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
1.33
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
4.48
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
4.59
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
1.22
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.25
Price movement
52 week high16.68
52 week low14.74
Current bid price-
Current offer price-
Current mid price16.41
Region
1UK70.52%
2Money Market10.69%
3Others8.95%
4Netherlands5.7%
5France4.14%
Industry sector
No data available.
Asset type
1UK Fixed Interest70.52%
2Money Market10.69%
3Global Fixed Interest8.95%
4Dutch Fixed Interest5.7%
5French Fixed Interest4.14%
Individual holdings
1HSBC HOLDINGS FRN PERP 4.2%
2LLOYDS BANK PLC FRN PERP2.7%
3COVENTRY BUILDING SOCIETY FRN PERP2.4%
4CREDIT AGRICOLE FRN PERP 29-04-20492.4%
5STICHTING AK RABOBANK CERTIFICATEN 6.5% PERP2.3%
6GEN ACCIDENT 8.875% CUM2.1%
7AVIVA PLC1.9%
8BARCLAYS PLC 5.875% FRN PERPETUAL1.9%
9PGH CAPITAL 6.625% 2025-12-181.9%
Management
Fund manager group
GAM
Fund manager company
GAM Fund Management Ltd
Fund type
OEIC
Fund objective
To achieve capital gain in Sterling. The Fund seeks to achieve this objective through investment principally on a worldwide basis (up to 10% of net assets may be in Emerging Markets) in income bearing or accruing securities with fixed principal amounts including government bonds, corporate bonds, junior debt securities, preferred shares, convertible securities and contingent capital notes.
Benchmark
  • Barclays Sterling Aggregate Corporate Index
Investment style
Strategic Investment
Investment method
Fixed Interest
Fund managers
NameSinceBiography
Gregoire Mivelaz31/07/2015Gregoire Mivelaz is a Fund Manager at Atlanticomnium S.A. and a member of Atlanticomnium’s Management Committee. Atlanticomnium S.A. specialises in bond portfolio management. Prior to joining Atlanticomnium S.A. in 2009, Mr Mivelaz held positions both as a buy-side and as a sell-side credit analyst. Mr Mivelaz graduated from the University of St Gallen and holds a BA in Finance and Capital Markets, an MA in Economics and is a CAIA charterholder. He is based in Geneva.
Anthony Smouha11/07/2011Anthony Smouha is Chief Executive Officer of ATLANTICOMNIUM S.A. and is adviser to multiple GAM bond funds. ATLANTICOMNIUM S.A. specialises in bond portfolio management. Prior to joining ATLANTICOMNIUM S.A. in 1992, Mr Smouha was senior vice president, head of bond trading and sales at Soditic SA/SG Warburg Soditic SA, Geneva. Prior to this, he was at Credit Suisse First Boston in London. Mr Smouha was educated at Harrow School and holds an MA Cantab Hons in Economics from the University of Cambridge. He is based in Geneva.
Compliance
Transparent for Austrian Tax, Transparent for Swiss Tax, IA Recognised, Reporting Fund Status, UCITS IV Compliant
Domicile
No data available.
Fund for sale in
Austria, Switzerland, Germany, Denmark, Spain, Finland, United Kingdom, Ireland, Luxembourg, Netherlands, Norway, Offshore, Singapore, Sweden
GAM Star Credit Opportunities GBP Acc
Initial charge5%
Annual charge1.35%
Min single investment£6,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)1.58%
Total expense ratio (TER)1.58%
Bid price-
Offer price-
Mid price19.247
CurrencyGBP
Price updated14/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi code05DT
GAM Star Credit Opportunities GBP Inc
Initial charge5%
Annual charge1.35%
Min single investment£6,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)1.58%
Total expense ratio (TER)1.58%
Bid price-
Offer price-
Mid price14.0781
CurrencyGBP
Price updated14/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi code05DU
GAM Star Credit Opportunities GBP Inst
Initial charge5%
Annual charge0.95%
Min single investment£12,000,000
Min regular saving£0
Available in ISAYes
Ongoing charge (OCF)1.18%
Total expense ratio (TER)1.18%
Bid price-
Offer price-
Mid price16.4061
CurrencyGBP
Price updated14/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeI9LX
GAM Star Credit Opportunities GBP Inst Inc
Initial charge5%
Annual charge0.95%
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)1.18%
Total expense ratio (TER)1.18%
Bid price-
Offer price-
Mid price13.5631
CurrencyGBP
Price updated14/02/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeKPMD
GAM Star Credit Opportunities GBP MCZ II Hedged SGD
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price9.92
CurrencySGD
Price updated14/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeOBKB
GAM Star Credit Opportunities GBP MZ Inc GBP
Initial charge5%
Annual charge0.75%
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price10.2017
CurrencyGBP
Price updated14/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeO2ZE
GAM Star Credit Opportunities GBP Q Inst
Initial charge5%
Annual charge0.95%
Min single investment£12,000,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)1.18%
Total expense ratio (TER)1.18%
Bid price-
Offer price-
Mid price11.3735
CurrencyGBP
Price updated14/02/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeNDKL
GAM Star Credit Opportunities GBP QZ Inc GBP
Initial charge5%
Annual charge0.75%
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price10.2587
CurrencyGBP
Price updated14/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeO2O0
GAM Star Credit Opportunities GBP SI GBP
Initial charge5%
Annual charge0.95%
Min single investment£12,000,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)1.18%
Total expense ratio (TER)1.18%
Bid price-
Offer price-
Mid price12.0786
CurrencyGBP
Price updated14/02/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeK1VE
GAM Star Credit Opportunities GBP Z GBP
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price10.7117
CurrencyGBP
Price updated14/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeOBKA
GAM Star Credit Opportunities GBP Z II Acc GBP
Initial charge5%
Annual charge0.75%
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)1.57%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price10.359
CurrencyGBP
Price updated14/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeO3RY
Data provided by

The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.

This information is sourced from our partner Financial Express. We believe the data to be correct however you should take care in using any information.

You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.