We now have our three-year record, a 4-star rating from Morningstar and the $100 million mark behind us.
Newport Beach, CA (PRWEB) August 08, 2016
If there was a trifecta of fund management, Anfield Capital Management has just nailed one.1
The boutique investment firm’s Universal Fixed-Income Fund earned a 4-star rating of 242 funds in the Nontraditional Bond category from Morningstar, Inc., for the 3-year period ending 6/30/2016, based on risk adjusted returns. The Fund celebrated its third anniversary and cheered as its assets-under-management breached the strategically important $100 million barrier. “It’s all welcome news,” says Anfield founder and CEO David Young. “We now have our three-year record, a 4-star rating from Morningstar and the $100 million mark behind us. Going forward everything changes, we now “screen in” to asset allocator searches rather than having to do the heavy lifting of talking decision makers into looking at the fund. This we believe, along with the obvious economic advantages of growth, will potentially allow consistently higher return with lower risk vis-a-vis the huge brand name funds.”
Anfield’s success, says Young, vindicates years of work crafting the right fund for a challenging interest-rate environment and a smart team to manage it. A veteran of PIMCO, Young recruited ex-colleagues from the fixed-income priesthood after launching Anfield in 2009. Though steeped in PIMCO’s old-school rubric he and his team opted as their flagship product an “unconstrained” fixed-income fund, a new-generation model that allows for greater flexibility regarding asset classes and lengths of maturity because it is not linked to an index.
“The UFIF has the freedom to take both long and short positions in all fixed income instruments and markets,” Young says. “And given the uncertain interest-rate environment it is more nimble than traditional fixed-income products, exposed as they are to the inevitability of rising interest rates.”
For Young, who has navigated bond markets in both the U.S. and Europe from offices in Newport Beach and London, it has been a redemptive third year. He and his team had to overcome institutional resistance to so-called “index agnostic” funds, fed in part by inflated sales pitches by rivals. “They oversold very aggressive strategies and claims that were simply unsustainable,” says Young. “So when reality caught up with the hype there was a crisis of both credibility and personality for unconstrained funds generally. We had to fight our way out of that bucket and we succeeded by keeping things simple, angling for attractive yields with a low risk, low volatility strategy that has been vindicated.”
Is bland the new bling? According to Anfield’s house view, an investment horizon cluttered with risk – “Brexit” and immigration concerns in Europe, China jitters in Asia, electoral politics in the U.S. and geopolitics crisis in the Middle East – rewards prudence and restraint. “We’ve done pretty well given market conditions and we’ll stick with it because once rising interest rates and inflation gain traction they could bite quickly and meaningfully. We’d rather secure a high-quality and attractive yield stream over time rather than play a meandering interest-rate market. That’s a fundamentally different approach that we’ll leave to others.”
1 Elysian Capital Markets Group, LLC is a wholesale distribution partner for Anfield Capital Management, with focused efforts on retail broker dealers, registered investment advisors and family offices.
Morningstar is an independent provider of financial information. Morningstar performance rankings are based on total return without sales charge relative to all share classes of mutual funds with similar objectives and determined by Morningstar. The top 10% of the funds in a rating universe receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars and the bottom 10% receive one star. Past performance or ranking is not indicative of future results.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Anfield Universal Fixed Income Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 866.866.4848. The prospectus should be read carefully before investing. The Anfield Universal Fixed Income Fund is distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Anfield Capital Management, and Elysian Capital Markets Group, LLC are unaffiliated with Northern Lights Distributors, LLC.
There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses.
Mutual Funds involve risk including loss of principle. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and their value may fluctuate in response to the market’s perception of issuer creditworthiness; while generally supported by some form of government or private guarantee there is no assurance that private guarantors will meet their obligations. High yield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. Diversification does not ensure against loss. The value of most bond funds and fixed income securities are impacted by changes in interest rates.