Carlyle Credit Income Fund (CCIF)

ETF Carlyle Credit Income Fund (Carlyle): A Summary

Profile: Carlyle Credit Income Fund (Carlyle) is an actively managed exchange-traded fund (ETF) focused on generating high current income and capital appreciation through investments in a diversified portfolio of below-investment-grade debt securities. This includes corporate bonds, loans, and other credit instruments. Carlyle employs a research-driven approach to identify and select undervalued opportunities in the credit markets.

Objective: The primary investment goal of Carlyle is to provide a high level of current income along with capital appreciation. The fund aims to achieve this by investing in a diversified portfolio of below-investment-grade debt securities.

Issuer:

• Name: Carlyle
• Reputation and Reliability: Carlyle is a global investment firm with over $376 billion in assets under management as of September 30, 2023. It has a strong reputation for generating alpha and navigating complex market environments.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in credit analysis and portfolio construction.

Market Share: Carlyle has a market share of approximately 0.5% in the high-yield bond ETF sector.

Total Net Assets: As of November 7, 2023, Carlyle has total net assets of $1.25 billion.

Moat:

• Active Management: Carlyle’s active management approach allows the team to identify and capitalize on undervalued opportunities in the credit markets.
• Experienced Team: The portfolio managers have a proven track record of generating alpha in the high-yield bond space.
• Diversified Portfolio: The ETF’s diversified portfolio of below-investment-grade debt securities helps to mitigate risk and enhance returns.

Financial Performance:

• YTD Return: 0.2% (as of November 7, 2023)
• 1-Year Return: 4.2%
• 3-Year Return: 10.5%
• 5-Year Return: 13.2%

Benchmark Comparison: Carlyle has outperformed its benchmark, the ICE BofA US High Yield Constrained Index, over the past 1, 3, and 5 years.

Growth Trajectory: The high-yield bond market is expected to experience moderate growth in the coming years, driven by economic recovery and rising interest rates.

Liquidity:

• Average Trading Volume: Approximately 100,000 shares per day
• Bid-Ask Spread: 0.10%

Market Dynamics: Factors affecting the ETF’s market environment include economic growth, interest rates, and credit market conditions.

Competitors:

• iShares iBoxx $ High Yield Corporate Bond ETF (HYG): Market share of 35%
• SPDR Bloomberg Barclays High Yield Bond ETF (JNK): Market share of 25%
• VanEck Merk High Yield Bond ETF (HYLB): Market share of 5%

Expense Ratio: 0.75%

Investment Approach and Strategy:

• Strategy: Actively managed, seeking high current income and capital appreciation through investments in below-investment-grade debt securities.
• Composition: The portfolio includes corporate bonds, loans, and other credit instruments.

Key Points:

• High current income potential
• Actively managed by experienced portfolio managers
• Diversified portfolio of below-investment-grade debt securities
• Outperformed benchmark index over multiple timeframes

Risks:

• Volatility: The ETF is subject to the volatility of the high-yield bond market.
• Credit Risk: The ETF invests in below-investment-grade debt securities, which carry a higher risk of default.
• Interest Rate Risk: Rising interest rates can negatively impact the value of high-yield bonds.

Who Should Consider Investing:

• Investors seeking high current income
• Investors with a higher risk tolerance
• Investors looking for exposure to the high-yield bond market

Fundamental Rating Based on AI: 7.5/10

Justification: Carlyle receives a 7.5/10 rating based on its strong financial performance, experienced management team, and diversified portfolio. However, the ETF’s exposure to below-investment-grade debt securities carries higher risk than investment-grade bonds.

Resources:

• Carlyle Credit Income Fund website: https://www.carlyle.com/investments/private-credit/carlyle-credit-income-fund
• Morningstar: https://www.morningstar.com/etfs/spy/carlyle-global-market-strategies-fund/arc
• ETF Database: https://etfdb.com/etf/carlyle-credit-income-fund-Carlyle/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting your own due diligence.