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Global Credit

Prices & performance
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Strategy Overview

Key Facts

Entry Price:

Exit Price:

Price Date:
* The unit price for the Fund will be delayed temporarily given a special distribution is in progress.
* This is an annualised interest rate from the past seven days. For actual performance for our Cash Funds, please view the performance page.


Performance returns are calculated net of management fees and transaction costs. Performance returns for periods greater than one year are annualised. Past performance is not a reliable indicator of future performance.

Why invest with us in global credit?

We have been investing in corporate bonds for more than 25 years and our Global Credit investment process has stood the test of time. The flagship Wholesale Global Credit Income Fund is designed to provide diversified exposure to global credit markets, capturing the credit premium available whilst avoiding permanent capital impairment, i.e. defaults. 

A floating rate provides protection against interest rate rises – duration is fully hedged in the Wholesale Global Credit Income Fund, meaning performance outcomes are not directly affected by changes in government bond yields. This is important to bear in mind, given the possibility of higher official interest rates and government bond yields in the future.

  • A proven and differentiated investment philosophy: Since credit market returns are asymmetric, we focus on ‘avoiding the losers’ through rigorous credit analysis, combined with sophisticated portfolio construction focused on diversification. 

  • Consistent long-term performance track record: Favourable risk-adjusted returns generated over 3-5 year time horizons.

  • Multi-dimensional credit research: Credit research focuses on assessing credit risk and identifying deteriorating issuers. Our analysis considers a variety of risk dimensions, enabling significant breadth.

  • Best-in-class Environmental, Social and Governance (ESG) integration: We have a vigorous Environmental, Social and Governance (ESG) process that is built in at both the company and product level. More importantly, ESG risk factors are an important consideration in the assignment of credit ratings on individual issuers.

What are the risks?

Although all investments carry risk, the level of risk is dependent on the type of investment strategy and the underlying investments. Generally, the higher the potential return of an investment, the greater the risk.

The risks of investing in Global Credit strategies include:

Currency risk

For investments in international assets, which have currency exposure, there is potential for adverse movements in exchange rates to reduce their Australian dollar value.

Credit risk

The issuers of bonds or similar investments may not pay income or repay capital when due.

Interest rate risk

Risk that the investment value or future returns of an asset may be adversely impacted either directly or indirectly by changes in interest rates.

Derivatives risk

Derivatives are contracts between two parties that usually derive their value from the price of a physical asset or market index. While the use of derivatives offers the opportunity for higher gain, it can also magnify losses to a fund.

As with any investment, there are no guarantees on the value of the investment or the income generated from it. Investors may get back less than the original amount invested. For a full description of the terms of investment and the risks, please see the Product Disclosure Statement for each fund. If you are in any doubt as to the suitability of our funds for your investment needs, please seek financial advice.

The importance of credit research

The importance of credit research

What is credit risk? 

What is the Global Credit Fund? 



We go beyond the limits of most credit analysis

Our global credit income strategy provides investors with higher yields than those on offer from cash and government bonds and diversification to complement equity exposures. We go the extra mile to navigate risks and opportunities in global markets. Ky Van Tang, Credit Research Co-lead, explains why our team of credit research analysts scrutinise ESG risks the hardest.

“We’re looking to construct well-diversified portfolios of global corporate bonds that can provide steady income over the full credit cycle.”

Tony Togher

Head of Short Term Investments and Global Credit

We’re obsessive about risk management

In our view, investing in credit is as much about risk management as it is about return management. Credit market returns are asymmetric; there is typically limited upside potential and risks are concentrated on the downside. We are value-based investors with an unrelenting focus on risk management. By completing thorough credit research, we aim to identify deteriorating issuers. Environmental, social, and governance (ESG) assessments form a critical component of the research process. 

In security selection and portfolio construction, we aim to combine the most compelling risk-adjusted opportunities into well diversified portfolios.

  • Our focus is on issuers where risks are evolving, as changes can influence performance outcomes over time. 
  • We have best-in-class ESG research capabilities and our responsible investment (RI) processes are highly rated by global consultants. 
  • Specialist analysts share information around the globe to support a global suite of credit products.
  • Internal Credit Ratings directly influence portfolio construction decisions, underlining the importance of disciplined research. 
“ESG issues have a direct impact on an issuer's risk and therefore its probability of default. If a company manages ESG risks poorly, we don’t have confidence that other risks are being well managed.”

Ky Van Tang

Co-Head of Credit Research

Case study

General Electric – losing power?

US-based conglomerate General Electric (GE) has been beset by questionable corporate governance practices, lack of transparency and a string of unexpected strategic announcements. The broader market appears to have extended GE some goodwill due to its ‘brand name’ rather than assessing the firm on underlying facts, though this appears to be changing gradually. 

Our ESG risk rating on the company was initially raised in late 2017 and again in late 2018. Consequently, internal credit ratings have been consistently below the external ratings agencies. Our assessment on the credit and ESG risks, along with uncertainty on the company’s strategy and future credit profile prompted us to sell GE bonds in our global credit portfolios. 

Risk assessment:

- GE reduced the size of its Board amid significant operating deterioration, underlining the governance risks present. There have been repeated changes in leadership, which disrupt the business and can result in continual shifts in company strategy. Repeated negative surprises and management changes are red flags in terms of internal controls and suggest a lack of cohesion in strategy. Accordingly it is difficult to envisage what the company might look like in the medium term. 

- Our greatest concern is that cash flow will be insufficient to service the company’s enormous debt load. At this stage we are unconvinced that the firm’s current plan to retain the Power, Renewable Energy and Aviation subsidiaries – along with parts of GE Capital – will remain intact. This is a serious concern from a credit perspective as underlying businesses face serious headwinds and as management priorities are spread thinly. Further, GE Capital’s debt is now guaranteed by the parent. We think GE Capital could be breakeven at best and could require significant capital contributions in the near term. 


For illustration purposes only. Reference to specific securities (if any) is included for the purpose of illustration only and should not be construed as a recommendation to buy or sell the same. All securities mentioned herein may or may not form part of the holdings of First Sentier Investors portfolios at a certain point in time, and the holdings may change over time.

Responsible Investment

Our corporate RI strategy is based upon three strategic pillars of quality, stewardship and engagement.

For Global Credit, the Environmental, Social and Governance (ESG) assessment impacts the internal credit rating (ICR) provided by the Credit Analysts via our Credit Research process.

Learn more about the Global Credit team's approach to Responsible Investment

“Our credit analysts are tasked with monitoring the credit risk profile of individual borrowers. The aim is to remove deteriorating issuers from portfolios before default risk starts to affect valuations.”

Mike Arnold

Co-Head of Credit Research

Meet the investment team

Tony Togher

Head of Fixed Income, Short Term Investments and Global Credit

Craig Morabito

Senior Portfolio Manager

Ben Samuel

Portfolio Manager

Ky Van Tang

Co-Lead, Credit Research

Want to know more?

Contact your Financial Adviser