Aperture Credit Opportunities Fund: Commentary for Q1 2024

Quarter in Review

Risk markets’ performance in Q1 2024 ended up surprising most investors and strategists.

After the relentless rally in US treasuries in the latter two months of 2023, the market reversed, and US 10-year yields rose approximately 40 bps during the quarter. The rise in yields was driven by stronger-than-expected macro data and this, combined with increased euphoria around AI, led to a blistering rally in DM equities with the S&P and Nikkei indices posting +10% and +20% returns, respectively. Credit, as ever, was caught in the middle. Total return on IG (as measured by LQD4) was down -86 bps, whilst HY (HYG5) managed a positive return of 1.5%. In Europe, HY performance (as measured by IHYG6) was less positive at +23 bps.

Against this backdrop the Aperture Credit Opportunities Fund generated +0.92%, which was -0.88% versus the benchmark.

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