Portfolio and Market Commentary
Sticky yet tame inflation had lifted slightly off Winter lows, backed by continued global deficit spending, risking fiscal
sustainability, commodity under-investment and supply constraints wars and geopolitical risks bring.
At the moment, however, these forces’ effects have paused, leading to respite in markets’ fears of a breakout. Stockpiles
across energy and downstream food-related, meanwhile lack cushion against further and elongated disruption. Yet
labour markets remain in no-hire, no-fire mode, as productivity seems pervasive.
Growth continues from an odd mix of impetus – AI-induced capex and tariff induced reshoring; China rerouting trade
routes, focused on strategic reserve builds; and LatAm political stability and commodity demand; a backdrop of
meaningful US/Asia/LatAm growth has become the norm. Yet peace continues elusive, both in Eastern Europe and the
Persian Gulf, risking this. We continue to deplete energy, cash, and political cushions, risking harsh demand
destruction.
Through these doldrums of Summer, we sit buffeted by crosscurrents across risk assets, neither rallying away nor
sinking from valuation highs. Maybe it’s too soon to deflate the AI Hype, Private Credit Indigestion, and borrowing
glutton-ness.
Seems a smart time to focus on quality yield, deleveraging off positive free cash flow and enjoy yield from short
duration. We continue to target these attractive idiosyncratic credit opportunities, where we find relative value, mainly
across LatAm and the Nordics, with limited North America, Continental Europe, Middle East, or African exposure,
outside of Shipping, Energy and Financials.
- Inflation sticky, but at least this month, below fears
- Dualling now-forever wars continue
- Buffering crosscurrents through AI investment and trade
- Against this backdrop, meaningful US/Asia/LatAm growth inches forward
- Risk assets absorb, neither rallying away nor sinking from valuation highs
Monthly Performance (Since January 1st, 2023)
Fund Terms
Key Risks
The value of shares in the UCITS and income received from it can go down as well as up and investors may not get back the full amount invested. Performance may also be affected by currency fluctuations.
The UCITS seeks to achieve its investment objective by principally investing in a diversified portfolio of publicly-issued bonds. The UCITS may utilise financial derivative instruments for hedging, efficient portfolio management and/or investment purposes.
Bonds or other debt securities involve credit risk represented by the possibility of default by the issuer. In the event that any issuer experiences financial or economic difficulties, this may affect the value of the relevant securities and any amounts paid on such securities. This may in turn affect the Net Asset Value per Share of the UCITS.
Investment instruments have historically been subject to price movements that may occur due to market or issue-specific factors. As a result, the performance of the UCITS can fluctuate over time.
Other significant risks include: liquidity risk and operational risk. For full details of the risks applicable to the UCITS, please refer to the ‘Risk Factors’ sections in the current Prospectus of SphereInvest Global UCITS ICAV and the Offering Supplement of the UCITS sub-fund – SphereInvest Global Credit Strategies Fund.
Disclaimer - Important Information
This is a marketing communication issued by SphereInvest Group Limited (“SIGL”), a company incorporated in Malta and authorised and regulated by the Malta Financial Services Authority (“MFSA”) as a UCITS and AIFM Investment Management Company.
SIGL is the Investment Manager of SphereInvest Global UCITS ICAV (the “UCITS”), a company incorporated under the laws of Ireland, authorised and regulated by the Central Bank of Ireland. Please refer to the Prospectus of the UCITS, the Offering Supplement of SphereInvest Global Credit Strategies Fund (a sub-fund of the UCITS) and to the Key Investor Information Document, available in English for all authorised share classes of the sub-fund upon request and via www.sphereinvest.com. In addition, a summary of investor rights is also available in English, upon request and via www.sphereinvest.com.
SphereInvest Global Credit Strategies Fund is notified for marketing in a number of European Member States under the UCITS Directive. The UCITS can terminate such notification for any share class and/or for the sub-fund (as a whole) at any time by using the process contained in article 93a of the UCITS Directive.
This publication is only being provided for illustrative purposes. It should not be construed as investment advice or an offer, invitation or recommendation to transact in any of the investment instruments mentioned. The investment which is being promoted through this communication concerns the acquisition of investor shares in SphereInvest Global Credit Strategies Fund (a sub-fund of the UCITS) and not in any of the underlying assets of this sub-fund.
Past performance does not predict future returns. Performance details provided are in share class currency, include reinvested dividends (if any), net of all fees, including any management and performance fees, as well as, all costs incurred by, and charged to, the UCITS.
Potential investors should seek their own independent financial advice. Every investment involves risk, especially with regard to fluctuations in value, currency movement and return. The value of investments and the income therefrom can go down as well as up. Prospective Investors should read the Prospectus and Offering Supplement for details and specific risk factors of the UCITS promoted herein.
Share Class D monthly performance information is being disclosed to enable investors to see actual returns achieved since inception in the Euro share class.
Ready to take the next step?
Whether you're exploring new investment opportunities or looking to strengthen your portfolio strategy, our team is here to help. Get in touch to find out how SphereInvest can deliver insight, performance, and long-term value tailored to your goals.
Have any Question?
+353 1 578 1991