Credo Dynamic
Credo Dynamic is a multi-asset portfolio which is designed to give equity style returns over the long term – but with lower risk. The fund invests in a diversified portfolio of equities, bonds and alternatives – with the ability to access both direct investments and collectives. It also has a focus on sterling assets.
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Fund Managers
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Rupert Silver, Fund co-manager Rupert Silver joined Credo in 2000 and heads its fixed income offering as director and senior portfolio manager. He has over 25 years of industry experience and previously held tenures at Wise Speke and Brewin Dolphin. Rupert holds a BA (LLB).
Ben Newton, Fund co-manager Benjamin Newton joined Credo as an investment analyst in 2014. He holds an MSc in finance from Imperial College and is a CFA charterholder. Prior to joining Credo, Ben spent four years working at Barclays Wealth & Investments, managing private client portfolios as a discretionary portfolio manager.
Rupert Silver, Fund co-manager Rupert Silver joined Credo in 2000 and heads its fixed income offering as director and senior portfolio manager. He has over 25 years of industry experience and previously held tenures at Wise Speke and Brewin Dolphin. Rupert holds a BA (LLB).
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Ben Newton, Fund co-manager Benjamin Newton joined Credo as an investment analyst in 2014. He holds an MSc in finance from Imperial College and is a CFA charterholder. Prior to joining Credo, Ben spent four years working at Barclays Wealth & Investments, managing private client portfolios as a discretionary portfolio manager.
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Company Description
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Fund Performance
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Company Description
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Investment process
This is an active, flexible, multi-asset strategy that combines long-term core holdings with tactical opportunities, aiming for attractive risk-adjusted returns with lower volatility than pure equity investments. The fund is style agnostic and uses a bottom-up approach, with a top-down overlay.
The key to the philosophy is a core/satellite approach. The core of the portfolio will consist of high-quality equities (the majority of which will be passive) and a number of high-quality bonds. The satellite element will tend to be higher turnover opportunities and reflects the management team’s position on markets at the time, allowing them to dial up and down risk as appropriate. The team would tend to put shorter-term opportunities in this bucket. The final portfolio will tend to hold between 70-100 holdings, the majority of which will be in fixed income positions.
The managers are experienced in the fixed income space and will leverage off Credo’s global equity and model portfolio solutions teams for exposure within equities and alternatives respectively.
Rupert and Benjamin are both risk averse and will look to keep position sizes small, meaning the portfolio is very diversified. However, they do acknowledge there are points in the market where they may want to take more risk (Brexit, Covid, Liz Truss Budget as examples). They believe one of the advantages they have over their peers is the ability to move quickly – which is not as easy to do for funds which invest in a breadth of assets.
Turnover is around 100% a year, with the fund managers particularly active when it comes to investment trust discounts and bonds (they can hold lots of short-dated bonds and see opportunities in this market every 2-3 months).
Risk
The fund is fairly risk averse but they also prioritise being quick and nimble with changes to the portfolio. A good example of their risk-averse nature is that should they see an opportunity in markets, they are happy to open a position in the asset, but will want to see others join (increased flows/momentum) before it becomes a meaningful overweight.
Internal rules are in place including a weekly meeting covering risk and a quarterly liquidity report. Individual positions are limited to 3% on equities and 4% on corporate bonds. There is also internal oversight from the investment committee (which looks at the likes of asset allocation) and an internal compliance team. External oversight is conducted by an independent board.
ESG
The fund doesn’t place a focus on ESG criteria.
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