Long Credit

Composite Performance (%)

  • LCP Long Credit Fixed Income (Gross of fees)
  • LCP Long Credit Fixed Income (Net of fees)
  • Bloomberg Barclays Long Credit Index
Performance Disclosures

Logan Circle Partners, L.P. (“Logan Circle” or the “Firm”) is a registered investment adviser and began managing assets on November 1, 2007. On September 15, 2017, the Firm became a wholly owned subsidiary of MetLife, Inc. and is part of MetLife Investment Management, MetLife, Inc.’s institutional investment management business. From April 16, 2010 to September 15, 2017, the Firm was a subsidiary of Fortress Investment Group LLC. The Firm continues to operate as Logan Circle Partners, L.P. Additionally, on December 19, 2011, the Firm formed a new subsidiary, Logan Circle Partners I LLC, which is a wholly-owned entity of the Firm. The Firm is defined to include all accounts managed by Logan Circle Partners, L.P. and Logan Circle Partners I LLC. The track record presented represents the team’s performance for the Logan Circle Long Credit Fixed Income (“Long Credit”) composite from November 1, 2008 (“inception date” and “creation date”) to the present.

Logan Circle claims compliance with the Global Investment Performance Standards (“GIPS®”) and has prepared and presented this report in compliance with the GIPS® standards. Logan Circle has been independently verified for the periods November 1, 2007 to December 31, 2017. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS® standards. The Long Credit composite has been examined for the periods November 1, 2008 to December 31, 2017. Verification does not ensure the accuracy of any specific composite presentation. The verification and performance examination reports are available upon request.

The Long Credit strategy seeks to outperform the long maturity U.S. bond market by investing in fixed income securities across the corporate and structured markets.  Effective December 1, 2014 the Long Credit composite contains fully discretionary, fee-paying fixed income accounts with assets exceeding $20 million, managed in accordance with the applicable composite strategy except as otherwise excluded herein. Prior to December 1, 2014 there was no minimum account size for the Long Credit composite. The Firm maintains a complete list and description of composites which are available upon request. Policies for valuing portfolios, calculating performance and preparing compliant presentations are available upon request.

The performance benchmark for the Logan Circle Long Credit Fixed Income composite is the Bloomberg Barclays Long Credit Index which measures the performance of a large group of high quality corporate bonds, U.S. Treasuries and government-related issues with maturities greater than 10 years. The Bloomberg Barclays Long Credit Index is comprised of investment grade rated credit issuers. To be index eligible, each security must be a minimum of $250 million in size, have a maturity of 10 years or longer, be U.S. Dollar denominated, publically issued, and carry a fixed coupon. All index returns presented are provided to represent the investment environment existing during the time periods shown and will not be covered by the future report of independent verifiers. For comparison purposes, the indices are fully invested, include the reinvestment of income, and are unmanaged and unavailable for direct investments. The returns for the indices do not include any transaction costs, management fees or other costs.

Returns are based on fully discretionary accounts under management and may include terminated accounts. The dispersion of annual returns is measured by the standard deviation among asset-weighted portfolio returns represented within the Long Credit composite for the full year. Dispersion is not calculated for composites with five or fewer accounts for the whole period.

Performance returns are presented gross and net of fees, include the reinvestment of all income and are calculated in U.S. dollars. Dividend income has been recorded net of all applicable foreign withholding taxes. Returns calculated gross of fees do not reflect the deduction of our investment management fees. Individual client returns will be reduced by investment management fees and other expenses that the account may incur. The investment management fee schedule for the Long Credit strategy is 0.30% on the first $100 million, 0.25% on amounts from $100 million to $250 million and 0.20% on amounts over $250 million. Net returns have been calculated by reducing the monthly gross returns by the highest stated ADV fee for the strategy. From inception date to November 2009, the highest stated ADV fee used to calculate monthly net returns was 0.40%. From December 2009 thru March 2018 the highest stated ADV fee is 0.35%. From April 2018 to the present the highest stated ADV fee is 0.30%. Fees have a compounding effect on cumulative results. Investment management fees are described in Part 2A of the Firm’s Form ADV. Actual investment management fees incurred by clients may vary.

Derivatives may make up a part of the Long Credit strategy, as the Firm believes that derivatives offer value and are appropriate investments for client mandates. The Firm may utilize futures, forwards and interest rate swaps to assist in the management of our portfolios. The Firm utilizes derivatives in its efforts to achieve the appropriate level of risk to meet the return targets, rather than for speculative purposes.

Past performance is not indicative of future results. The information presented is available for institutional client use only and is presented for use only as a one-on-one presentation.

Composite Statistics and Performance:

YEAR GROSS-of-FEE
RETURN
NET-of-FEE
RETURN
BENCHMARK
RETURN
NUMBER OF
PORTFOLIOS
DISPERSION
STDV 2
COMPOSITE
3 YR STDV 3
BENCHMARK
3 YR STDV 3
COMPOSITE
ASSETS
% TOTAL FIRM
ASSETS
11/1/2008 (Inception) to 12/31/2008 22.37% 22.30% 21.38% ≤ 5 N/A N/A N/A $62,336,312 < 1%
2009 20.82% 20.36% 16.80% ≤ 5 N/A N/A N/A $290,940,496 3%
2010 14.76% 14.36% 10.69% ≤ 5 N/A N/A N/A $428,925,179 4%
2011 20.03% 19.62% 17.13% ≤ 5 N/A 8.59% 8.53% $543,293,327 4.02%
2012 17.34% 16.94% 12.73% ≤ 5 N/A 7.08% 7.07% $1,151,894,747 5.57%
2013 -3.96% -4.30% -6.62% ≤ 5 N/A 8.28% 8.40% $1,735,155,457 6.83%
2014 17.75% 17.34% 16.39% ≤ 5 N/A 7.62% 7.71% $2,441,339,941 7.54%
2015 -4.73% -5.06% -4.56% 8 0.24% 7.86% 8.02% $2,391,601,874 7.67%
2016 13.46% 13.07% 10.22% 10 0.21% 7.99% 7.86% $2,618,197,151 7.83%
2017 13.59% 13.20% 12.21% 13 0.26% 7.43% 7.28% $3,384,652,187 8.80%
1Q 2018 -3.07% -3.15% -3.83% 12 N/A N/A N/A $3,095,226,205 8.13%
2Q 2018 -2.48% -2.57% -2.65% 11 N/A N/A N/A $2,980,122,504 7.78%

1 Past performance is not indicative of future results. Net of fee returns reflect the deduction of investment advisory fees and are calculated in the same manner as gross of fee returns. Net of fee returns are calculated using the highest fee rate disclosed in the Firm’s ADV. Fees for separate accounts may be negotiable depending upon asset size and type of account. The performance benchmark for the Logan Circle Long Credit Fixed Income composite is the Bloomberg Barclays Long Credit Index which measures the performance of a large group of high quality corporate and non-corporate bonds with maturities greater than 10 years. For additional benchmark disclosure, please see the full GIPS® disclosures at the end of this Presentation.

2 “N/A” is an indication that the information is not statistically meaningful due to an insufficient number of portfolios (five or fewer) in the composite for the entire year. Standard deviation is only presented for accounts managed for a full calendar year.

3 The three-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36 month period. The standard deviation is not presented for 2008 through 2010 because it is not required for periods prior to 2011. It is also not presented for quarter-ends.

Investors should carefully consider their investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information, please email asklogan@lcpim.com to request more information. Please review the Terms of Use of this site for additional details.