Attractive risk-adjusted returns
Avenida CLO Bond Fund’s objective is to seek to generate attractive risk-adjusted returns primarily by investing in and dynamically managing a portfolio of mainly US CLO debt securities, with potential allocation to currency-hedged European CLO debt securities on a long basis. The fund will aim for a combined average investment grade rating at the time of purchase.
The fund will invest in CLO investment grade tranches with a target rating of mainly BBB. CLO Bonds generally have lower volatility than corporate bonds of the same rating. The track record of CLO bonds has minimal historical defaults in BBB and higher tranches and, following the crisis, have enhanced protection features.
The partners managing the fund have over 18 years of experience in the CLO business, possessing a unique knowledge of the CLO market and having established relationships and direct access to CLO managers, professionals and structuring banks. They have selected over 75 different primary transactions before setting up the Avenida CLO fund, generating an average mid-teen absolute return for their investors through disciplined, consistent investment and risk management processes.
4% - 6%
per annum target return