Tobam’s ‘anti-benchmark’ credit fund raises $300m

Paris-based asset manager Tobam says its “anti-benchmark” US credit strategy has seen inflows of over $300 million (€266 million) since inception last November.

The firm’s president, Yves Choueifaty, who won Funds Europe’s chief investment officer of the year award in 2015, has been particularly vocal in his critique of benchmark use for any asset class. 

Traditionally, corporate bond indices are weighted towards those companies that issue the most debt, leading to a heavy concentration of large debtor companies and, subsequently, a lack of portfolio diversification.

The firm says the success of the fund reflects growing interest from global investors for innovative strategies such as applying a ‘smart beta’ approach to the fixed income space.

Tobam also uses its patented maximum diversification approach. When this is used in its credit fund, the firm says it aims to deliver the credit risk premium to investors through a portfolio of diversified issues, providing a more efficient core exposure to credit.

The fund, a Luxembourg Sicav, has assets of $317 million.

©2016 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST