London / Frankfurt am Main, May 16 2017

Stratton Street Capital and Universal-Investment launch two new global credit strategies

London-based credit specialist Stratton Street Capital and German investment company Universal-Investment have launched two unique global credit sub-funds: the Stratton Street UCITS - NFA Global Bond Fund UI (ISIN LU1483930282) and the Stratton Street UCITS - Next Generation Global Bond Fund UI (ISIN LU1483929276).

The objective of both UCITS sub-funds is to provide investors with both a high income and a superior overall return to both developed and emerging market bond indices over a market cycle. The sub-funds seek to sustain higher income than typical investment grade indices by targeting undervalued investments which amplify capital appreciation while reducing downside risks.

The Stratton Street UCITS - NFA Global Bond Fund UI will invest in hard currency global investment grade credit, whilst the Stratton Street UCITS - Next Generation Global Bond Fund UI will invest a minimum of 80 percent of the fund volume in hard currency global investment grade credit, but also in some high yield and active currency exposure. For this sub-fund, up to 20 percent of the fund volume may be in sub-investment grade hard currency credit and the fund can take currency exposure of up to 25 percent.

Creditors vs. debtors instead of emerging vs. developed markets

Traditionally investors have segmented the world into developed and emerging economies, whereas Stratton Street looks at creditors vs. debtors. “Many so called ‘developed’ countries have amassed substantial debts and are in fact much riskier than is often perceived,” explains Andy Seaman, Partner & Chief Investment Officer of Stratton Street Capital. “Conversely, many countries classified as ‘emerging’ have strong fundamentals, low levels of government debt, high credit quality and incomes well above those of many ‘developed’ countries.”

Net Foreign Asset (NFA) analysis is the primary long-term driver of country and currency returns. The analysis that Stratton Street utilises takes the cumulative current account (adjusted for valuation effects) in the entire wealth of a country (across government, corporations and households) and divides that into GDP to generate a ranking.

“Credit Markets are undoubtedly inefficient, which is great for true active managers like Stratton Street,” explains Ben Day, Head of Global Sales at Stratton Street Capital. “By combining our unique NFA analysis, proprietary global macro and relative value models we are able to focus our credit research and construct portfolios of undervalued credits that fit our overall macro view. We do not believe in building portfolios based upon index weights given the inefficient index construction in the fixed income space. Instead we focus on relative value across the entire credit spectrum.”

Strategies for investment grade global credit and High Yield / active currency exposure

Both sub-funds leverage off Stratton Street’s unique approach to credit market investing

New products complement existing Renminbi Bond Fund UI offering

Die Subfondsdaten auf einen Blick

Asset manager: Stratton Street Capital LLP, London / United Kingdom
Management mompany: Universal-Investment-Luxembourg S.A., Grevenmacher / Luxembourg
Funds name / SICAV: Stratton Street UCITS

NFA Global Bond Fund UI

ISIN: LU1483930282
Share class: QAEUR hedged
Fund category: Renten
Fund currency of share class: EUR
Appropriation of earnings: Accumulating
Ongoing charges (estimate): 1.04% p.a.
Benchmark: J.P. Morgan Global Aggregate Bond Index (USD)
Minimum first investment: EUR 500,000
Subscription charge: Up to 3%

Next Generation Global Bond Fund UI

ISIN: LU1483929276
Share class: QDEUR hedged
Fund category: Renten
Fund currency of share class: EUR
Appropriation of earnings: Distributing
Ongoing charges (estimate): 1.1% p.a.
Benchmark: J.P. Morgan Global Government Bond Index (GBI Global) (USD)
Mindesterstanlage: 500.000 EUR
Ausgabeaufschlag: Bis zu 3 %

About Stratton Street Capital

Stratton Street is a specialist global credit manager authorised and regulated by the FCA. They currently manage and advise USD 1.3 billion in assets across global and regional strategies. At the heart of the firm’s investment philosophy is a unique way of looking at the investment universe, focussing on long-term active returns utilising a systematic and repeatable process. Stratton Street Partners Andy Seaman and Mark Johns have been working together for 20 years; when their respective firms merged in 1997. They have the enviable track record of producing positive returns in the funds they managed during the large market downturns of 1998, 2002 and 2008. They have built an experienced team of seven investment professionals and one macro-consultant based in NYC. Stratton Street’s global investment grade composite has returned above 7.5 percent annualised since inception (Sep-09)

Additional information is available at

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