Integrated Credit Management

We believe that a combination of identifying inefficiency in market pricing and a thorough focus on valuation yields positive sustainable returns. We have developed a special focus on the role of credit in fixed income portfolios.
  • Identify inefficiency in
    market pricing
  • A throrough focus
    on valuation
  • Yields positive
    sustainable returns

An Opportunity to Exploit

The credit market is growing rapidly and we remain at the forefront of identifying mispricing to enhance returns and manage risk. While South Africa has a well-developed listed credit market, it tends to lag other markets in unlisted credit. This is exacerbated by Basel III requirements which restrict bank lending. Yet over half of all profit-based taxes paid to the South African Revenue Service are from unlisted companies. Our highly developed unlisted investment pipeline sources good quality unlisted debt opportunities, with a focus on combining mutually reinforcing financial and social returns.

Valuation

Disciplined credit analysis is central to listed and unlisted bond investing. It focuses on individual characteristics and fundamentals of issuers as well as the downside risk of default. Specifically, our approach combines meticulous bottom up credit analysis which incorporates the crucial top-down economic and regulatory environment. Our focus is on credit opportunities which offer the best risk/return profile, and we limit risk through issuer and sector limits whilst ensuring diversification and healthy liquidity management. Our best-of-breed corporate credit opportunities span across investment grade, high yield, municipal bonds, public sector, non-governmental public entities, bank loans and other corporate securities.