Acadian expands credit lineup with global high yield, U.S. Investment Grade

Global systematic investment specialist, Acadian Asset Management LLC, has added to its systematic credit lineup with the launch of new Global High Yield and U.S. Investment Grade offerings.

Managed by the firm’s US-based credit team, led by Scott Richardson, Senior Vice President and Director of Systematic Credit, the strategies join U.S. High Yield – launched in November 2023. Richardson joined Acadian in 2022, after over 15 years leading both systematic equity and credit investing at BlackRock and AQR. He has over 25 years’ experience in academia at various institutions including the London Business School and University of Pennsylvania’s Wharton School.

In emphasising the case for a strategic allocation to credit, Richardson said: “research shows that investors are well-served to have an allocation to government bonds, corporate bonds, and equities, rather than focusing on one asset class or a duo of asset classes”.

Both Global High Yield and U.S. Investment Grade aim to deliver robust, diversifying active returns based on fundamental and technical investment ideas.

Richardson also pointed to transparency and implementation efficiency as key benefits of Acadian’s offerings: “Systematic approaches can more easily provide transparency on portfolio composition and performance as well as capitalise on the fragmented corporate bond trading environment. At Acadian, we view both as high priorities that are worthy of significant resourcing.”

“On the trading side, we find the largest implementation benefits come from the ability to process vast amounts of trading data and react in real-time to short-term market opportunities,” he said.

Gillian Savage, Chief Executive Officer, Acadian Australia, said that amid higher rates, demand for credit strategies was strong and growing, particularly among institutional investors.

“Acadian has a long and successful track record of managing systematic equities strategies, and the team’s philosophy of taking a structured, data-driven approach to credit is a natural fit for our investment platform,” she said.

In terms of a broader spectrum of credit capabilities beyond the three strategies now live, Acadian can offer benchmark-aware investment solutions across the developed market corporate bond universe, covering over 20,000 securities. Investment vehicles can be tailored to meet asset owner preferences with respect to geography, ratings, and sustainability criteria.