Green Ash – Sustainable Credit Fund

Green Ash Sustainable Short Duration Credit Fund (GA SSDC)

The Green Ash Sustainable Credit Fund is a short duration credit fund that provides exposure to companies with superior ESG metrics relative to peers.

  • Green Ash has built upon its expertise in the global credit markets to offer a Sustainable Short Duration Credit Fund which invests in a balanced mix of liquid global investment grade and high yield bonds with an average portfolio duration below 2.5 years
  • The sustainable strategy focuses on companies with superior ESG standards, and looks to achieve stable returns, whilst preserving capital, minimizing drawdown risk and maintaining daily liquidity at all times
  • The fund launched in June 2020 is designed to provide low to moderate credit risk with limited drawdowns
  • The fund is classified as an ESG ‘Article 8’ fund by SFDR.

Investment Parameters

Fund Key Characteristics ESG Sustainable Focus

  • Fully ESG integrated fundamental analysis
  • Combination of best in class selection and socially responsible exclusions

Global Short Duration Crossover

Investment Grade & High Yield blend

  • Min 55% Investment Grade
  • Max 45% High Yield

Laddered Exposure

  • Min. portfolio rating Baa3/BBB-
  • Min. security rating B3/B-
  • Minimised drawdown risk
  • Extensive bottom-up credit research c.70 positions, all currency hedged

UCITS Funds Characteristics

  • Daily liquidity
  • Luxembourg UCITS IV regulated fund structure
  • Hedged Share classes in EUR, USD, GBP, CHF
  • Retail and Institutional
  • USD 31mm AuM
 Maturity Buckets Max. Exposure
1 Year 35%
2 Year 35%
3 Year 35%
4 Year 35%
5 Year 25%
 Fee Structure & Min. Orders
Institutional 0.45% ($100)
Retail 0.80% ($10K)
 Category Max. Exposure
Investment Grade 100%
High Yield 45%
Emerging Market 25%
Non Rated 0%
Duration 2.5yrs
Legal Maturity 5yrs
Non Base FX (EUR) 10%
Cash 100%

Quantifiable ESG Benefit

The GA Sustainable Short Duration Credit (SSDC) Fund has an MSCI ESG rating of AA.

The chart below shows the exposure by MSCI ESG rating for the GA SSDC fund and both the index of global Investment grade credit and global high yield credit.

Portfolio Characteristics

Key Fund Metrics

 EUR Headged Strategy Jun 2021
Currency EUR
Duration 2.2
Credit Spread 114
Yield to Worst (local) 1.25%
Yield to Worst (EUR Hedge) 0.89%
Average Ratings Baa3/BBB-
No. of Positions 72
Cash 2.0%

Key Fund Metrics

  Currency Hedged Yields by Share Class
 Once currency hedged the adjusted yields to maturity are currently:
  • USD 1.62%
  • GBP 1.56%
  • EUR 0.89%
  • CHF 0.70%

Performance History

The Green Ash Sustainable Short Duration Credit (SSDC) Strategy was launched in June 2020 – Historical performance below

 Prior Year Performance 2020
GA SSDC Fund EUR I IShare Class 1.84%
GA SSDC Fund USD I Share Class 2.41%

 

 2021 Jan Feb Mar Apr May Jun YTD
GA SSDC Fund EUR I IShare Class -0.02% -0.03% -0.15% 0.20% 0.13% 0.07% 0.20%
GA SSDC Fund USD I IShare Class 0.04% 0.04% -0.08% 0.26% 0.19% 0.14% 0.60%