Independent Australian funds management group Yarra Capital Management today announced the launch of the Yarra Absolute Credit Strategy, a new diversified Australian credit portfolio available initially to Australian and international institutional investors.

The new strategy harnesses the Firm’s Australian fundamental research capabilities across the equities and credit landscape. It will provide investors with a core credit offering, accessing a diversified portfolio of listed and unlisted Australian domiciled credit securities across multi-sectors, tailored to meet each client’s underlying objectives.

The strategy will be led by Senior Investment Manager Phil Strano, who joined Yarra Capital Management in May 2017 from VFMC, where he successfully ran a similar portfolio since 2010. Strano will be supported by Head of Australian Fixed Income Roy Keenan.

Commenting on the launch of the Yarra Absolute Credit Strategy, Phil Strano, Portfolio Manager, said:

“I’m thrilled to be launching a strategy specifically designed to deliver higher risk-adjusted returns from Australian domiciled credit through the cycle. The Firm’s proven investment processes combined with its broader Australian fundamental research capabilities uniquely positions us to take advantage of market mispricing across multi sectors, including unlisted debt, where declining bank participation is increasing opportunities for institutional investors.

“Additionally, in being a floating rate and absolute return portfolio, and with an average investment grade profile, we are ideally positioned to construct defensive and highly diversified portfolios for a rising yield environment.”

Dion Hershan, Managing Director, added:

“The Yarra Absolute Credit strategy is a natural extension of the Firm’s capabilities, and we’re excited to be bringing this opportunity to market. The strategy has a $1.5 trillion opportunity set and offers institutional investors access to a proven investment approach, delivered by an investment team which is uniquely positioned to maximise opportunities in Australian corporate credit.”