Tideway manages three in-house funds under the Tideway UCITS Funds ICAV (Ireland) umbrella.
The funds all invest in Hybrid Capital fixed income securities, a core competence of Tideway where our investment process and experience in the credit markets adds value.
The Tideway GBP Hybrid Capital Fund aims to generate 5% per annum income, net of all expenses, from a hybrid capital fixed income portfolio with medium volatility. The Fund is designed for investors with medium to long-term liquidity requirements (5 years plus). The Fund is a more secure alternative to Equity Income as the assets and expected cash flow are typically ranked senior to equity in the issuing company balance sheet.
The Tideway Real Return Fund is a mixed-asset target absolute return fund. Active risk hedging provides a degree of capital protection and reduces the volatility of returns. The Fund aims to deliver positive absolute capital growth net of fees on a rolling 12-month basis regardless of market conditions, with low to medium volatility. The Fund has a target return of 3-month £ Libor plus 3% p.a. net of fees on a rolling three year basis. The Fund invests primarily in debt and hybrid capital fixed income securities (typically 60%-80% of the NAV of the Fund), and in equities and equity-related securities (typically 20%- 40% of the NAV of the Fund).
The Tideway GBP Credit Fund is a lower risk credit portfolio, also incorporating Hybrid Capital fixed income securities but with generally shorter maturities and low to medium volatility. The Fund aims to generate income, net of all expenses, equivalent to the Bank of England UK Base Rate plus 1-2%. The Fund is designed for investors with short-term liquidity requirements (0-5 years), with the average duration of the Fund’s investments being maintained under five years.