Investment Strategy
Alcentra's primary investment objective is the preservation of capital and the minimization of credit losses. Alcentra's investment strategy and approach to credit selection is based on intensive fundamental research and credit analysis, combined with active portfolio management.*
| Credit Analysis | |
| Fundamental credit analysis |
| Projections and sensitivity analysis |
| Meetings with management team |
| Assign internal rating |
| Recommendation to buy, pass or commence coverage | |
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| Portfolio Managers | |
| Credit evaluation in portfolio context |
| Focus on diversification but not at expense of credit |
| Relative value analysis |
| Allocation decision | |
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An investment decision is based on credit fundamentals:
- Investment decisions to buy a credit require unanimous committee consent
- Execution of the buy-or-sell-decision is delegated to the portfolio managers
- Portfolios are monitored daily and scenario analysis is undertaken to evaluate the impact of additions or sales to the portfolio
Investments are considered for sale if:
- spread / price target is achieved
- credit deterioration
- portfolio reallocation is needed for relative value or diversification reasons
*BNY/AG’s investment methodology is subject to change at any time and without notice.
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