Our investment philosophy
The Alternative Credit Fund is our high-conviction strategy for accessing the alternative credit space-actively managed to generate strong, resilient cash flows and deliver compelling returns in a risk-controlled manner. We capitalize on both liquid and illiquid opportunities to offer investors growth, diversification, and downside protection through a quarterly liquidity vehicle.
Differentiated approach
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Specialist approach
We select skilled managers focused on specific alternative credit strategies, while actively managing the underlying exposures to build a high-conviction, highly specialized portfolio that aims to deliver differentiated returns.
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Strong headline yield
We generate strong, consistent income by actively managing a broad set of alternative credit strategies, capturing illiquidity and complexity premiums to enhance yield in a risk-controlled way.
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Robust credit quality
Focusing on minimizing risks through careful lending with robust covenants.
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Immediate access to a mature private debt portfolio
Avoiding the “J-curve” and accessing a diversified and mature private debt portfolio in strategies closed to new investors.
Investment objective
The fund seeks to generate an attractive risk-adjusted total return on a medium- and long-term basis.
| Expected return | Risk free rate + 3-5% p.a. (net of fees) |
|---|---|
| Expected volatility | Typically around 6-10% p.a. |
Fund facts
| Base currency | USD |
|---|---|
| Fund inception date | 1 August 2014 |
| NAV | Monthly |
| Subscriptions | Monthly |
| Subscription timings | 10 business days’ notice in Ireland, cash required by T-4 |
| Minimum initial subscription | USD 10 million |
| Redemptions | Quarterly. No hard lock. |
| Redemption timings | 50 calendar days’ notice in Ireland. |
| Regulator | Central Bank of Ireland |
| Legal form | Qualifying Investor Alternative Investment Fund |
| Structure | Master – Feeder |
| Manager | Carne Global Fund Managers (Ireland) Limited |
| Investment Manager | Towers Watson Investment Management Limited (TWIM) |
| Administrator | BNY Mellon Fund Services (Ireland) DAC |
| Depository | Bank of New York Mellon SA/NV |
Disclaimer
Please note that:
The value of all investments and the income from them can go down as well as up. This means you could get back less than you invested.
Past performance and simulated past performance are not reliable indicators of future returns.
Changes in exchange rates may cause the value of investments to decrease or increase.
Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future.
The securities and derivatives investment activities which the funds engage in, may be speculative and involve a substantial risk of loss.
Units or shares in the funds described herein may become illiquid and investors may redeem their investments only as stated in the funds’ prospectuses.
Key risk warnings
- This document is based on information available to Willis Towers Watson at the date of issue, and takes no account of subsequent developments.
- Towers Watson Investment Management Limited has approved this document for issue to recipients categorised as Professional Clients only.
- This material is intended for investors with long-term investment time horizons.
- The value of all investments and the income from them can go down as well as up. This means you could get back less than you invested.
- Changes in exchange rates may cause the value of investments to decrease or increase.
- Past performance does not predict future returns.
- The document contains figures that refer to simulated past performance, which does not predict future returns.
- Expected performance does not predict future returns.
- The scenarios presented are an estimate of future performance based on evidence from the past on how the value of this investment varies, and/or current market conditions and are not an exact indicator. What you will get will vary depending on how the market performs and how long you keep the investment [or product].
- Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future.
- The securities and derivatives investment activities which the fund engages in may be speculative and involve a substantial risk of loss.
- The fund may be exposed to credit and/or default risk of issuers of debt securities that may be held within the fund.
- The issuers of any bonds within the fund may default or not be able to pay the bond income as expected.
- If the fund is denominated in a currency other than your home currency, movements in exchange rates may, if not hedged, have a significant impact on the value of (and income from) your investment.
- Shares/units in the fund may become illiquid and investors may redeem their investments only as stated in the fund’s prospectus.
- Private markets refer to investments not traded on a public exchange or market.
- Underlying private markets investments of the fund will normally be in unlisted companies and assets whose securities are not publicly traded and are therefore likely to be illiquid. They carry substantially higher risk than many investments in the equity of larger, listed companies, their public debt securities, or in listed real assets.
- Investors should regard an investment in private markets as a long-term investment which carries higher risk than many other forms of investment.
- There is usually less transparency in place around the management of private markets investments given the lower disclosure requirements. In general, there is limited information available on the investments and performance of the underlying portfolio companies and assets, other than annual or semi-annual financial statements, or sometimes, quarterly reports.
- Such private market investments are more difficult to value given that they are not traded on a public exchange or market.
