22nd September 2011

Thames River multi-manager portfolio update: Thames River Distribution Fund ‏

Summary

Bought : Carador Income Fund 

• New ‘specialist’ addition
• Attractive and reliable yield
• Diversifying income stream
• Portfolio yielding in excess of 5.5%

Recent volatility has served to underline the importance of not focusing too narrowly on any one particular area of the market to deliver the goods. Diversification is the key mantra across our portfolios and nowhere more so than in the Thames River Distribution Fund.

We pride ourselves on the fact that our portfolio contains over 1000 individual underlying income producing assets. These include bonds and equities but also encompass more ‘specialist’ income investments – the latter clearly differentiating our approach from that adopted by many of our peers.  

Carador Income Fund is a new ‘specialist’ income investment with its inclusion enhancing yield and further diversifying the portfolio’s income stream. We participated in a new listing of ‘C’ shares in this listed fund that in turn invests in over 140 asset backed debt instruments.  The portfolio itself is managed by a talented and experienced team from GSO Capital Partners International and its current yield of 10% is attractive and stable as well as displaying much lower volatility than that displayed by the likes of equities. The debt is also largely floating rate and so will see the income rise if interest rates start to increase from current record low levels. 

Rob Burdett and Gary Potter
Fund Managers

Investments