Pacific AM launches global active credit fund with Australian partner

investmentweek.co.uk:

Christopher Joye (pictured) is CIO and portfolio manager at Coolabah Capital Management.

The Pacific Coolabah Global Active Credit fund will focus on long-only credit opportunities, using a combination of proprietary quantitative asset-selection approach and deep fundamental research.

In June, Pacific AM joined a «strategic partnership» with Coolabah to create a fixed income wing at the firm, with Coolabah bringing its active credit fund management and trading expertise to the firm.

Pacific Asset Management partners with Australian credit manager to build out fixed income expertise

Managed by Pacific Asset Management and sub-advised by Coolabah, stewardship will be «central» to the management of the fund, the firm said.

Using the Bloomberg Global Aggregate Corporate Currency Hedged index as its benchmark, the fund aims to outperform it by more than 150 basis points.

The strategy 's approach will be based on three major investment principles of generating alpha from inefficiencies in liquid high-grade bonds, minimising idiosyncratic credit risk and maintaining a focus on quantitative and technical dislocations.

Matthew Lamb, CEO of Pacific AM, said: «PAM has always looked for fund managers who can bring a true craft investment approach to our investors. I am delighted that Chris and I were able to structure a partnership earlier this year that has enabled the launch of this truly differentiated investment grade credit fund.

»Coolabah's investment approach is unlike any other I have seen and lets us bring to investors a real alternative to the more commoditised, traditional fixed income funds. I look forward to working with Chris and the rest of the Coolabah team."

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