Credit when we see value, treasuries when we don't

Wellington Credit Total Return Fund

This is a marketing communication. Please refer to the Fund Prospectus and KIID/KID and / or offering documents before making any final investment decisions. Please refer to the risks section at the bottom of this page.

Why invest?

What is Credit Total Return?
Why a flexible credit approach?
The Fund’s role in your client’s portfolio

What is Credit Total Return?

Dynamic rotation

The Fund seeks to generate attractive risk-adjusted returns by rotating between treasuries and credit. The investment team allocates to investment grade, high yield, and emerging market debt when there is value on offer, and seeks safety in treasuries and cash when valuations are stretched.

Differentiated credit selection

Rather than searching for yield, the investment team is focused on identifying securities with stable to improving credit fundamentals and a higher likelihood of capital appreciation relative to the downside risk.

Core fixed income characteristics

The Fund is cash bond-focused and typically exhibits an investment grade rating and yield profile with 3-6 years of duration, which we believe can offer more stable returns.

Why a flexible credit approach?

Volatility creates risks and opportunities

Potential to shelter capital during periods of credit spread widening, and leaning into higher-risk return areas of fixed income where potential future returns appear favourable.

Taking advantage of price dislocations

By moving in the opposite direction of the biases of large fixed income investors, acting as a liquidity provider during periods when those investors are forced sellers and selling into periods of robust demand when valuations are stretched.

A complement to your credit and income allocation

In our view, approaches that maintain an average investment grade quality rating can provide competitive levels of yield without taking excessive default risk.

The Fund’s role in your client’s portfolio

view fund performance

Is there opportunity to rethink your core fixed income allocation?

In today’s new economic era, we believe a fixed income approach with the flexibility to dynamically allocate between treasuries and corporate bonds – while also preserving the liquidity and diversification properties of a traditional core fixed income portfolio – presents an attractive opportunity for investors.

Read Article

Fund Videos

Video Player is loading.

Current Time 0:00

Duration 0:00

Loaded: 0%

Stream Type LIVE

Remaining Time 0:00

The fund in 60 seconds

The Wellington Credit Total Return Fund is actively managed and seeks long-term total returns by investing primarily in a global portfolio of US Dollar-denominated treasury, corporate, high yield and emerging market fixed income instruments.

Video Player is loading.

Current Time 0:00

Duration 0:00

Loaded: 0%

Stream Type LIVE

Remaining Time 0:00

Meet the Manager

Connor Fitzgerald likens his passion for credit investing to his passion for sailing. Both require an intense level of focus and precision. The constantly evolving weather and wind conditions when sailing is analogous to the need to be flexible and a willingness to change course in fixed income when facts and prices change.

Investment examples

capitalising-on-the-mispricing-587960256-518x293v2

Capitalising on the mispricing of BBB vs BB credit spreads

Learn more

when-does-duration-work-113258143-518x293v2

When does duration work as an effective hedging tool?

Learn more

other fixed income funds

Wellington Global Impact Bond Fund

View Fund

image-of-a-bird-wing-made-up-of-a-broken-plate

Wellington Euro High Yield Bond Fund

View Fund

image-of-a-bee-made-up-of-a-broken-plate

Solutions for a new economic era

Find out more

FIXED INCOME CAPABILITIES

Consider the risks

Investors should consider the risks that may impact their capital, before investing. The value of your investment may fluctuate from the time of the original investment. Please refer to the risks section enclosed. A decision to invest should take account of all the characteristics and objectives described in the Fund offering documents.

Investment risks

BELOW INVESTMENT GRADE: Lower rated or unrated securities may have a significantly greater risk of default than investment grade securities, can be more volatile, less liquid, and involve higher transaction costs. | CAPITAL: Investment markets are subject to economic, regulatory, market sentiment and political risks. All investors should consider the risks that may impact their capital, before investing. The value of your investment may become worth more or less than at the time of the original investment. The Fund may experience a high volatility from time to time. | CONCENTRATION: Concentration of investments within securities, sectors or industries, or geographical regions may impact performance. | CREDIT: The value of a bond may decline, or the issuer/guarantor may fail to meet payment obligations. Typically lower-rated bonds carry a greater degree of credit risk than higher-rated bonds. | CURRENCY: The value of the Fund may be affected by changes in currency exchange rates. Unhedged currency risk may subject the Fund to significant volatility. | EMERGING MARKETS: Emerging markets may be subject to custodial and political risks, and volatility. Investment in foreign currency entails exchange risks. | HEDGING: Any hedging strategy using derivatives may not achieve a perfect hedge. | INTEREST RATES: The value of bonds tends to decline as interest rates rise. The change in value is greater for longer term than shorter term bonds. | LEVERAGE: The use of leverage can provide more market exposure than the money paid or deposited when the transaction is entered into. Losses may therefore exceed the original amount invested. | MANAGER: Investment performance depends on the investment management team and their investment strategies. If the strategies do not perform as expected, if opportunities to implement them do not arise, or if the team does not implement its investment strategies successfully; then a fund may underperform or experience losses. | SUSTAINABILITY: A Sustainability Risk can be defined as an environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of an investment.

PLEASE REFER TO THE FUND PROSPECTUS AND KIID/KID FOR A FULL LIST OF RISK FACTORS AND PRE-INVESTMENT DISCLOSURES.

Wellington Alternative Investments

Contact us

Our Funds

Fund Documents

FUND IDEAS

Fund Documents

Explore our insights

Asset class

Key Topics

Formats

2025 Investment Outlook

Asset class

Investment Solutions

Solutions For A New Economic Era

Sustainable Investing

Stewardship Principles

Investment Solutions

Funds

Corporate Sustainability

About us

Contact Us

Media & press

Careers