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Note from the Credit Desk

September 29, 2021 |Blog

By: Andrew Labbad Managing Partner, Portfolio Manager

Here is a quick update on the live market conditions from Amplus Credit Income Fund’s Senior Portfolio Manager, Andrew James Labbad.

For the month of September, we have seen some notable moves in different indices and asset classes as shown below. Volatility has picked up with headlines involving Evergrande’s debt burden, the effects of possible bond tapering starting in November and a sudden surge in bond yields. This has caused investors to reposition their portfolios which we have previously touched on in our August Fund update.

On September 28, 2021, we saw equities indices lose generally 1-2%, with 10-year treasury yields rising 5bps.

Amplus has been well-positioned for this type of market move. Hedging out the underlying interest rate risk has protected our investors from this month’s draw-down due to a rise in yields. Our tactical hedges for heightened volatility have paid dividends. We are pleased with the performance in our credit strategy for the month, and we look forward to updating you next month with our performance and outlook.

Amplus

Amplus, an innovative and flexible fixed-income strategy, is the place to be during good times and bad. It aims to protect investors during a downturn and maximize returns in a rising market. We invest in high-quality companies that are raising debt to invest in the growth of their businesses. We support their mission by purchasing bonds, preferred shares, and convertible notes, increasing our investment when the time is right. A small and agile fund combined with active trading, we can take full advantage of market volatility. Because Wealhouse’s goal is to make as much money for our investors as possible, we do not have layers of bureaucracy that hinder time-sensitive trades. During a sell-off, we can buy quickly. And during a market rally, we can sell just as fast.

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