iM Global Partner, the asset management and distribution arm of the iM Square investment platform, has launched the first sub-fund of its French-registered SICAV, the iMDolanMcEniry US Corporate fund, and has delegated its management to American US Credit specialist Dolan McEniry, which is 45 per cent-owned by iM Square.
The iMDolanMcEniry US Corporate fund is the first fund launched by iM Global Partner under management delegation. It is also the first sub-fund of the French SICAV iM Global Fund registered in France since the 30 October 2017.
Dolan says: “This is the first time that our management expertise has been exported outside the US market within a fund. Our choice to welcome iM Square to our capital, allows us to entrust the distribution of our historical expertise to a leading player on the European market. »
As a “bottom-up” manager, Dolan McEniry runs all its strategies with the help of an internal fundamental credit research analysis. Composed of an average of 85 per cent US Investment Grade credit and 15 per cent US High Yield credit (Maximum 20 per cent), iMDolanMcEniry US Corporate is a concentrated portfolio looking for undervalued bonds whose issuers generate significant and stable cash flows.
The management of this vehicle is based on the historic Dolan McEniry Core Plus strategy. Launched 20 years ago, this strategy now represents USD3.2 billion in assets for both institutional clients and high net worth individuals. Its objective is to invest in undervalued US credit bonds offering a good compromise between risk and return, depending on the fund manager. The fund managers act with the same management philosophy as a value stock picker.
Daniel Dolan, co-head of Dolan McEniry, adds: “Our investment philosophy is to stay in our ‘circle of competences’, to maintain our lender mentality rather than trading, to be very sceptical about the ratings given to companies by agencies while being contrarian when cash flows are strong and high. In case one has doubts, ‘No’ is an excellent decision in the bond universe”.
Roger McEniry, co-head of Dolan McEniry, says: “Over the past 20 years, our selection process has proven effective in times of crisis and unfavourable markets. It is conservative, reproducible and enables performance over time. It is our historical strategy, based on these management principles that we contribute to the UCITS iMDolanMcEniry US Corporate vehicle.”