CVC Income and Growth (CVCG)

CVCG is an investment company focused on European corporate debt, through senior secured loans and sub-investment grade credit. The company’s primary focus is to generate income, but its team of analysts are also well-positioned to deliver capital growth by investing in bonds trading below par. That’s helped it deliver a NAV return of over 70% in its ten-year history, comfortably ahead of the AIC’s Debt – Loans and Bonds sector benchmark. In this podcast, John Hughman speaks with portfolio manager Pieter Staelens about how the trust has navigated the recent dramatic shift in the interest rate environment; why its long-standing focus on floating rate debt has proved prescient; how the focus on large companies is helping it avoid distress in the corporate credit market, and how its deep pool of analysts allows it to target the best risk adjusted returns; and why the low interest rate era might not return for the foreseeable future.