Titan Hybrid Capital Bond Fund
Overview
The Fund aims to generate 5% income per annum, net of all fees from a Hybrid capital portfolio with medium volatility.
The fund invests in subordinated instruments issued by investment grade companies in order to capture enhanced yields with limited default risk. This bottom-up approach combines contrarian and conservative approaches to investing.
Factsheets
Webinar
You can watch the latest webinar from the fund managers here on the Hybrid Capital Bond Fund.
Prospectus + first and second addendums
Excess reportable income report 2022
Investor level equalisation report 2022
KIIDs
Application form
Investment Process
Review the range of available subordinated securities, and - taking into account complexity, liquidity and investment time horizon - create a ranking of risk-adjusted returns
Focus on large-cap. household name companies, with a preference for regulated industries
Ongoing portfolio monitoring & risk management
Consider qualitative factors – for example, management behaviour and reputation – alongside independent quantitative research and ongoing analysis of fundamental data
4 pillars of investment:
- Scenario analysis and portfolio adjustment – “How much will the bond / portfolio deliver in base case / bull case / bear case” ?
- Active roadshow participation with management providing detailed pricing and structure feedback to the syndicate banks
- Considered a valued dedicated Hybrid Capital investor, recognised by sell-side Debt Capital Market / Syndicate Desks
- Traditional investors typically ignore this segment
- Under-researched companies representing great opportunities for fundamental credit analysis in a less competitive environment for greater return
- Familiarity with non-economic drivers of balance sheet capital activity such as regulatory changes and adjustments to rating agency models
Why Invest?
Hybrid Capital is a highly differentiated asset class sitting between senior debt and equity of investment grade companies
Zero Default Track Record since inception in September 2016, including zero stressed sales prior to default - meaning that investors keep the quoted available returns
Offers a higher degree of certainty than Long Duration risk and Equity risk
Good use of “alternatives” allocation for those investors wanting high single digit income in 2024 – 2026
A transparent and scalable investment proposition – no leverage, derivatives or structured products
Investment Team
Peter Doherty
Head of Fixed Income and Lead Portfolio Manager
Chris Turdean
Investment Associate