The Forward Global Credit Long/Short Fund (FGCRX) complements the existing long-only Forward EM Corporate Debt Fund (FFXRX) launched in May 2011. Both funds are managed by SW Asset Management, a CA-based asset manager that specializes in global credit markets.
The new fund is offered in Investor Class, Institutional Class, Class C, and Class M shares, and with this latest fund launch, Forward Management has a total of 11 alternative strategies packaged as mutual funds, including six long/short funds in a variety of categories – commodities, multi-sector bonds, real estate and tactical allocation.
Forward Management CEO J. Alan Reid said the new long/short fund is designed for investors who want broad exposure to debt opportunities around the world, but are also concerned with volatility and interest-rate risks.
The new fund can hedge against sovereign defaults and extreme credit market downturns, with at least 40% of the fund assets to be invested in issuers based outside the US.
SW Asset Management co-founder and chief investment officer David Hinman said that many investors underestimate the potential of investing long and short in global corporate debt.
"The low interest rates and high leverage in the credit markets of the developed world add up to an excellent environment for the fund and that the fund could benefit from debt opportunities in the emerging world as well as the inevitable restructuring of debt in the developed world," said Hinman.
