TM Fulcrum Income Fund (INC)

An unconstrained portfolio targeting an enhanced monthly income yield regardless of underlying market conditions.

INVESTMENT OBJECTIVES

4.50%
income target of uk base rate +
MONTHLY
income paid
6-8%
TARGET VOLATILITY
0.4
EQUITY BETA

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Introduction

We launched the Fulcrum Income Fund in Feb 2018 in response to direct client demand for a multi-asset income solution. The Fund offers investors an enhanced level of income from a diverse range of asset classes, strategies and geographies. The multi-asset opportunity set ensures that the Fund can be managed with regard to maximising total return rather than being confined to higher yielding assets. This was particularly relevant in 2020, when many companies cut, cancelled or postponed their dividends and some high yield corporate and emerging market sovereign issuers defaulted on their debt. Beyond investment, risk management is central to our approach. More specifically, we seek to limit volatility and performance drawdowns to realistic and acceptable levels so that clients can maintain an appropriately long investment horizon and avoid common behavioural mistakes that stem from unexpected volatility.

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Key Literature

Factsheet

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Fund Brochure

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Contact

If you have any questions, do contact us and we would be happy to have a chat.

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Key Differentiators

  • Income: Fund is meeting a specific investor need with a well targeted portfolio structure
  • Quality and Stability of Team: we are an experienced and stable team that has worked together for nearly two decades
  • Repeatable Process: we follow a robust and dynamic investment process that is not reliant on luck
  • Performance Focus: we have delivered strong risk-adjusted returns with a low correlation to equities
  • Portfolio Breadth: our approach is highly diversified across strategies, time horizons, asset classes and geographies
  • Effective Risk Management: our risk-management process seeks to deliver return asymmetry
  • Culture of Excellence: we are at the knowledge frontier in all areas that impact our investment strategies

Investment Philosophy

While many investors have historically generated their income from traditional long only balanced portfolios, there is a move to funds looking to generate income from a much more diversified asset base. The Income Fund generates part of its income from bond coupons and equity dividends with the balance being generated through option premia. We have nearly two decades of experience of in such strategies and the Fund has navigated the past periods of volatility with particular attention to avoiding the obvious risks.

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Investment Universe

Equities

  • Developed Markets
  • Emerging Markets
  • Themes

Fixed Income

  • Developed Markets
  • Emerging Markets
  • Themes

Currencies

  • Developed Markets
  • Emerging Markets
  • Themes

Commodities

  • Agriculture
  • Energy
  • Industrials
  • Livestock
  • Materials
  • Metals
  • Precious Metals

Diversifying Strategies

  • Trend
  • Carry
  • Risk Premia

Responsible Investment

We strive to integrate responsible investing wherever it is possible to make a meaningful difference. In the case of this fund, this naturally leads us to our equity investments, a significant portion of which are in climate-aligned companies. Tackling climate change is a strategic focus for our firm and we leverage our growing capability in this area, including responsible stewardship and direct engagement with the companies we own as well as indirect, collaborative engagement through industry groups.

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Collaborating

Leveraging Fulcrum's Capabilites

Our investment approach is rooted in academic rigour and analytical tenacity. 

Temple

Macro &
Multi-Asset

Three Gears

Risk Premia

Shield

Alternative
Solutions

Connection to web

Thematic
Equities

Worldwide

Responsible
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The Team

Fulcrum’s Senior Investment Team is responsible for setting the investment strategy and they are supported by a team of economists, strategists and analysts who regularly assess the economic environment, market valuations, behavioural biases and the political landscape.

Stephen Crewe
Stephen Crewe
Portfolio Manager
Stephen Crewe
Stephen Crewe
Portfolio Manager

Stephen Crewe joined Fulcrum in 2013. He is the lead portfolio manager for our Fulcrum Income Fund and Fulcrum Equity Dispersion Fund, in addition to being an integral member of the broader investment team, where his focus is on volatility strategies. Prior to joining Fulcrum, Stephen spent over two decades with F&C/BMO as Director of Alternatives.

Nabeel Abdoula
Nabeel Abdoula
Deputy CIO
Nabeel Abdoula
Nabeel Abdoula
Deputy CIO

Nabeel is Deputy CIO and a member of the Fulcrum Investment Team. Prior to joining Fulcrum in 2011 Nabeel worked at Goldman Sachs for four years in the Investment Strategy Group. Nabeel graduated from Warwick University in 2007 with a BSc in Mathematics, Operational Research, Statistics and Economics. He has been a CFA charterholder since 2011.

Contact Us

If you have any questions, do contact us and we would be happy to have a chat.