Investing for income whilst protecting capital can be complex
Identifying the risks in any investment is a pre-condition for assessing whether the returns are adequate compensation for the risk being borne. Investors seeking to generate more cashflow from their portfolios whilst balancing the risk of capital loss find themselves looking to credit markets for bond and loan income solutions.
“Diversification is the only free lunch in finance”
The Nobel Prize winning father of modern portfolio theory Hary Markowitz’s famous quote is particularly relevant to credit investing, where the drivers of returns will be a combination of the coupon, duration, credit and convexity profiles of the bonds in the portfolios. Experienced credit managers understand where each fixed income sector sits along the risk spectrum and how to harvest income returns from the diversity of bond profiles whilst managing capital downside risk.
Complexity into Simplicity
At Plankton Capital, our deep experience in global credit market products combined with local market experience has guided our thinking on reducing the complexity of bond portfolio management into simple bespoke strategies for wholesale investors. Liquidity and transparency of underlying cashflow generation are our guiding principles for portfolio construction.
Less Noise, More Signal
We combine institutional grade credit and portfolio management expertise, with a focus on what wholesale investors are seeking from their portfolios – defensive, capital stable, high credit quality cashflow generation – with liquidity and transparency. Less noise, more signal.