Garuav Chatley marks his third year among the elite performers in our Euro Stars ranking, and his second consecutive year as the third-highest ranked manager from the 250 listed.

For the London-based manager, it has been more of the same in terms of focusing on valuations to identify the best corporate debt opportunities. The latest data for the €2.9bn M&G European Credit Investment fund indicates that Chatley has moved nimbly as bond markets evolved, which reflects his research-driven investment style.

In data to the end of April 2022, the fund was underweight both financial and industrial corporate bond issuers, while enacting a significant overweight to sovereign debt, which sits outside the core remit of his fund.

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CASHING IN

These latest moves follow a period of profit-taking over the first part of 2022, as Chatley cashed in on some winning names, while also dropping issuers he believed were no longer offering adequate compensation for the risk he was taking. He has clung more closely to higher quality debt, which is referenced in his recent market commentaries, highlighting the paucity of viable high yield debt opportunities in the European market.

Moving into an inflationary environment, which is coupled with the prospect of rising rates, Chatley is perhaps better equipped than some of his newer peers.

This is because he began trading bonds at M&G Investments in 2005 while he was named as a portfolio manager in 2006, which meant he has weathered the global financial crisis and subsequent investment storms.

That longevity is also evident in pure performance terms, as Chatley boasts an enviable record of risk-adjusted performance. In terms of broad Citywire ratings, Chatley has consistently been recognised since first becoming eligible in February 2013, marking an unbroken streak which is nearing a decade. This includes holding a top-tier Citywire AAA rating in every month since October 2018 to the present day.