GRAIAN Defensive Credit Fund

A UCITS-compliant vehicle for our flagship Defensive Credit strategy, focused on higher-quality and crossover high-yield credit, as well as global investment-grade bonds, with an emphasis on shorter-duration instruments to limit interest rate risk.

CURRENCY

Not all costs are displayed. For further information please refer to prospectus. Data Source: FundPartner Solutions (Europe) S.A.

Defensive Credit Fund USD

Fund Performance table

📊 Performance Table — ISIN: LU3209528085

Data Source: FundPartner Solutions (Europe) S.A.
Performance is net of fees. Past performance should not be taken as an indication or guarantee of future performance.

Not all costs are displayed. For further information please refer to prospectus. Data Source: FundPartner Solutions (Europe) S.A.

Defensive Credit Fund EUR

Fund Performance table

📊 Performance Table — ISIN: LU3209528242

Data Source: FundPartner Solutions (Europe) S.A.
Performance is net of fees. Past performance should not be taken as an indication or guarantee of future performance.

INVESTMENT OBJECTIVE

The Sub-Fund seeks to maximise total return by investing primarily in investment grade and higher-rated non-investment grade bonds (BB- and above) with maturities of up to 6 years, aiming to deliver attractive risk-adjusted returns with a disciplined approach to risk. The portfolio is broadly diversified across all types of debt securities—including government, corporate, and convertible bonds—without restrictions on geography, sector, or currency. Up to 20% may be allocated to emerging markets, and up to 60% in non-investment grade or unrated bonds. The Sub-Fund may also invest in structured products and, within set limits, in other funds. For flexibility and risk management, it may hold cash, money market instruments, or funds, and can temporarily allocate up to 100% to these assets in defensive market conditions.

The Sub-Fund is actively managed. The Sub-Fund has no benchmark index and is not managed in reference to a benchmark index.

 

RISK LEVEL

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The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because we are not able to pay you.

ORGANIZATIONAL DATA

Fund ManagerGraian Capital Management S.A.
Management CompanyFundPartner Solutions (Europe) S.A.
AuditorsDeloitte Audit Sàrl
Custodian bankPictet & Cie (Europe) AG
Legal StatusUCITS V Luxembourg SICAV
DomicileLuxembourg
NAV calculationDaily
Contact informationinfo@graian.ch

MARKET COMMENTARY

During August, the strategy delivered positive performance despite continued geopolitical and market uncertainty. Credit spreads tightened across regions, with US spreads reversing part of July’s under performance versus Europe. Rates volatility remained elevated, driven by ongoing geopolitical developments and central bank communication, both of which continue to influence expectations for global growth, inflation and monetary policy. Rates positioning detracted from performance during the month.
From a positioning perspective, the fund maintains a balanced allocation between BBB and BB-rated credits. The portfolio remains biased towards the longer end of the 1-5 year maturity spectrum. Duration was broadly unchanged at around 2.4 years, with most exposure concentrated in US rates. Geographical allocation remained broadly stable, while the portfolio continues to maintain significant exposure to US dollar-denominated assets.
Despite elevated uncertainty, particularly around inflation, recent U.S. macroeconomic data continue to point to a resilient economy. Solid labour market indicators have eased recession concerns, while hawkish remarks from the Federal Reserve Chair at Jackson Hole prompted markets to reprice expectations for U.S. monetary policy, with further rate hikes now anticipated. In Europe, the outlook remains more complex. The recent energy shock has had a stronger impact on headline inflation, with the potential for second-round effects on core inflation. At the same time, growth has proven more resilient than expected. Following the ECB’s recent rate hike, markets continue to anticipate further tightening. Overall, the backdrop remains supportive for credit spreads, although rates volatility is likely to persist.

SELECTED ASSET BREAKDOWNS

Ratings Breakdown

Geographical Breakdown

Maturity Breakdown

TOP 10 Holdings

DOWNLOAD AREA

Website for documents:
https://www.fundinfo.com/
https://www.fundsquare.net/

English
Factsheet
PRIIP – Class Z2 USD
PRIIP – Class HZ2 EUR
Prospectus