Multi Asset Credit Fund

Fund overview

The Royal London Multi Asset Credit (MAC) Fund invests in a broader universe of credit asset classes including secured debt, leveraged loans, developed high yield debt, asset backed securities (ABS), emerging market debt and investment grade credit. The Fund allows investors to access a wider universe of credit asset classes than would ordinarily be available in a bond fund and aims to provide enhanced income while keeping volatility low.

Fund Managers

The MAC Team is led by Azhar Hussain, who is supported by Fund Managers Khuram Sharih and Stephen Tapley and Senior Analyst Sebastien Poulin.

Azhar Hussain – Head of Global High Yield

Azhar Hussain joined RLAM in May 2012 as Head of Global High Yield. Azhar has 22 years’ experience of the financial industry. Before joining RLAM he was at Insight Investment Management as Head of High Yield and Leveraged Loans, and manager of a number of high yield credit funds. Prior to Insight, he worked at Gulf International Bank (GIB) in London, specialising in global high yield. He joined GIB in 2001 as an analyst, before assuming his first portfolio management role two years later and subsequently establishing a high yield team. Azhar began his career at Deloitte & Touche in 1996, where he qualified as a Chartered Accountant. Azhar has a BA in Economics and Law from the University of London (School of Oriental & African Studies).

Khuram Sharih – Fund Manager

Khuram Sharih joined RLAM in August 2016 as a Fund Manager, focusing on leveraged loans and alternative credit. He joined from Newton Investment Management, where he worked with their fixed income and global multi-asset teams. Khuram was previously at Cairn Capital, Denali Capital and JP Morgan in the US.

Investment approach

The Managers use a combination of top-down and bottom-up research across the Fund. Our top-down focus is on identifying where we sit within the credit cycle and where the Fund should bias exposure across themes, regions and sectors.  Credit selection then incorporates research from our in-house Credit Analysts who look for companies with sound long-term business practices.

At the macro level, our analysis starts with a quarterly economic review which covers all major economic regions and focusses upon key variables such as growth rates and inflation. This meeting is also used to formulate our outlook scenarios, including long-term default, yield and interest rate forecasts which help to shape our investment strategy. 

The next stage in portfolio construction focusses specifically on the companies themselves. As value investors, we believe that individual security selection will be the largest and most consistent contributor to performance within the Fund. 

As part of this process we focus on the cashflows of the company, its access to the debt markets, the covenants and security of the debt issues and the motivations of management and the owners. Overall, we aim to construct diversified portfolios that will deliver consistent alpha from multiple sources.

Product risk warning

Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. Unlike the income from a single fixed income security, the level of income (yield) from a fund is not fixed and may go up and down. For funds that use derivatives, their use may be beneficial, however, they also involve specific risks. Derivatives may alter the economic exposure of a fund over time, causing it to deviate from the performance of the broader market. Royal London Asset Management Investment Funds ICAV is an umbrella company with segregated liability between sub-funds, authorised and regulated by the Central Bank of Ireland.

MAC round table

Read this round table write up of our alternative credit discussion

Moving up the risk curve

MAC Masterclass

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Fund philosophy video