The currency of the holdings in the USD fund are predominantly in USD, although the exposure to US banks remains relatively limited.
• We have a focus on European / UK financials given our expertise in this area, and we see regulation as a stronger catalyst in Europe which is positive for bondholders.
• In terms of valuations, subordinated debt of European financials offer more attractive spreads / yields than US financials.
* The full legal name of the funds are GAM Star Fund plc. – GAM Star Credit Opportunities (USD), GAM Star Fund plc. – GAM Star Credit Opportunities (GBP) and GAM Star Fund plc. – GAM Star Credit Opportunities (EUR).
The mentioned financial instruments are provided for illustrative purposes only and shall not be considered as a direct offering, investment recommendation or investment advice. Allocations and holdings are subject to change. Past performance is not an indicator of future performance and current or future trends.
The gross performance does not include the effect of commissions, fees and other charges, which may
have a negative effect on the net performance. The views expressed herein are those of the manager at the time and are subject to change.
Furthermore, the historical circa 30% exposure to UK financial institutions is reflected by:
• Banks in the UK, such as HSBC and Standard Chartered, are extremely well diversified geographically and are therefore not UK-focused banks, per se.
• National champions like Lloyds and RBS have strong fundamentals and are focused on domestic retail banking.