Historic low rates and unprecedented quantitative easing from central banks have created ample opportunities of market spreads divergence globally. Amplus Credit Income Fund aims to maximize positive risk-adjusted returns in a rising market, while protecting investors from market risk in a downturn. By employing a diverse arsenal of investment strategies, Amplus is designed to capitalize on market inefficiencies and mispricing while minimizing interest rate exposures.
Amplus Credit Income Fund subscribes to a flexible investment style with primarily debt securities such as bonds, preferred shares, and convertible notes. We have the global relationships to invest in different currencies, taking advantage of the best value.
Monthly Returns*
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
YTD
2022
(0.07%)
(0.07%)
1.15%
(0.53%)
0.61%
0.74%
0.90%
+2.75%
2021
1.23%
0.83%
0.86%
1.26%
1.30%
1.35%
0.77%
0.37%
0.75%
0.22%
(0.08%)
0.72%
+10.00%
2020
5.71%
2.87%
3.24%
0.76%
3.02%
1.27%
+18.02%
*Founders Class – Net of 1% management costs, 10% performance costs and expenses
Core Value
The core strategy of the fund involves holding outright positions of credit instruments based on the fundamental investment thesis of their respective credit spreads. Risks will be hedged if necessary, which includes both currency and interest rate exposures. In other words, we buy credit assets from competent companies that fit the Wealhouse investment ethos – whose bond prices, despite temporary setbacks, are quality companies. We typically have long-term positive views on these assets and scoop them up before the spread gap squeezes back to equilibrium.
Cross-Currency Opportunities
Often, companies have access to funding in different currencies. Sometimes, there are significant differences, all else equal, in swap-equivalent spreads between bonds from the same issuer but in different currencies. This creates an opportunity where bonds in a particular currency are trading at a large discount. We identify these dislocations and capitalize on them by getting in front of positions before the market eventually corrects itself.
Active Trading
This tactical strategy is opportunistic and a useful balance to the fundamental nature of the Core Value strategy. It involves momentum trading, new issues trading, reacting to overall flows, while positioning ourselves to benefit from passive-driven rebalancing.
About the Manager
Andrew James Labbad, CFA Sr Portfolio Manager
Andrew James Labbad, CFA is the portfolio manager of Amplus Credit Income Fund. Mr. Labbad joins Wealhouse after almost a decade at TD Securities, where he was a Director of Credit Trading. A native of Montreal, Mr. Labbad is fluent in both French and English. Mr. Labbad received his Master of Business Administration from John Molson School of Business at Concordia University and Bachelor of Engineering from McGill University.
