CVC Income & Growth Ltd (LSE:CVCG) portfolio manager Pieter Staelens talked with Proactive at the One2One Investor Forum about the investment trust’s approach to credit markets, its focus on income and capital appreciation, and why the current interest-rate environment continues to offer opportunities for the portfolio.
Staelens explained that the strategy invests in a mix of performing and opportunistic credit, with the performing portfolio providing the foundation for dividend income and opportunistic investments targeting additional capital appreciation. He highlighted the importance of floating-rate debt, which has benefited as central banks raised base rates.
Risk management remains central to the strategy. More than 75% of the portfolio is typically invested in first-lien senior secured assets, while the portfolio contains around 170 issuers and its largest individual position is typically around 3%. Staelens stressed that credit losses, rather than defaults alone, are the key measure for lenders, pointing to CVC’s restructuring and recovery capabilities.
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