Titan Hybrid Capital Bond Fund
A differentiated investment opportunity within a growing and globally recognised market that offers both income and capital growth potential.
"
We invest in large household-name companies with strong balance sheets and pick up additional yield in subordinated debt, including Tier 1 Capital of the leading Banks and Insurers in Europe and the UK.
"
- Peter Doherty, Head of Fixed Income
The Titan Approach
We take a bottom-up approach to investing within the Hybrid Capital asset class, focused on capturing opportunities identified within individual capital structures and across the credit landscape. Our aim is to deliver a consistent income with limited default risk by investing in well established companies with strong balance sheets, often large-cap household names such as banks, insurers and utilities. We employ a research driven approach, investing lower down the capital structure to achieve enhanced returns. It is a transparent and scalable investment proposition with no leverage, derivatives or structured products, that is fully currency hedged to avoid any extra currency volatility.
What is Hybrid Capital?
- Hybrid Capital is a highly differentiated asset class that sits between senior debt and common equity

- The bonds get their name ‘hybrids’ as they hold characteristics of both equity (normally no maturity date or are very long dated) and bonds (with structured coupon payment)
- Corporate hybrid bonds are subordinated debt instruments issued by non-financial, mainly investment-grade rated companies, at time of issuance 

- As subordinated debt, investors are compensated by higher yields in exchange for the ‘subordination’ of their claim in the event of losses (which is extremely rare within investment- grade rated issuers).
Why consider this fund
- Investors can use hybrids to obtain an appealing yield in comparison with senior bonds from high quality and financially stable institutions
- Current market size is over USD 3trn+ and growing with bonds included in the major fixed income indices
- Offers a higher degree of certainty than Long Duration risk and Equity risk
- Offers diversification for an ‘alternatives’ allocation for those investors looking for high single digit income
- Most coupon payments are tax deductible, making hybrid debt cheaper to issue than common equity or preference shares on an after-tax basis
Repeatable and scalable
The Fund aims to generate 5% income per annum, net of all fees from a Hybrid Capital portfolio with medium volatility. Since launch the fund has achieved a Zero default track record and we believe our focused and research led investment process helps us to unearth high quality opportunities from across the market.
Past performance is no guide to future performance.
The investment team consider four key pillars to driving returns:
1. Total Return Approach
Scenario analysis and portfolio adjustment - “how much will the bond/portfolio deliver in base case, bull case and bear case.”
2. New issues
Active roadshow participation with management providing detailed pricing and structured feedback to the syndicate banks
Considered a valued dedicated Hybrid Capital investor, recognised by sell-side Debt Capital Market/ Syndicate Desks.
3. Unrated bonds
Traditional investors typically ignore this segment
Under-researched companies represent great opportunities for fundamental credit analysis in a less competitive environment for greater return.
4. Changes in capital treatment
Familiarity with non-economic drivers of balance sheet capital activity such as regulatory changes and adjustments to rating agency models.
Once an opportunity has been identified further analysis is conducted to assess qualitative factors such as management behaviour.
We build a concentrated portfolio of 30-50 high conviction investments with on-going portfolio monitoring and direct engagement with issuers to assess risk and return.
Delivered by an experienced and dedicated team.
With 50+ years of experience – led by Pete Doherty, our team members’ experience and expertise allow us to have a deep understanding of bank, insurance and corporate capital structures. Our long-standing industry relationships with direct issuers and issuer banks give us the ability to participate in bond 
new issues.
Important Information
The Fund is managed by Titan Investment Solutions (TIS), authorised and regulated by the Financial Conduct Authority. TIS is a subsidiary of Titan Wealth Holdings Limited.
Get in Touch
Contact us to find out more.
Important Risks to consider
Investments and the income derived from them can fall as well as rise and you may not get back the amount originally invested. The fund will invest in bonds and other debt instruments, this will be impacted by factors such as changes in interest rates and risk of default by the issuer. The Fund may engage in transactions in financial derivative instruments for hedging purposes. There is a risk that losses could be made on derivative positions or that the counterparties could fail to complete on transactions. The Fund may invest in Contingent Convertible Securities (CoCos). The value of CoCos is unpredictable and will be influenced by many factors, without limitation (i) the creditworthiness of the issuers; (ii) economic, financial and political events that affect the issuer; (iii) general market conditions and available liquidity. The investor may not receive a return of principal if expected on a call date or indeed at any date. Further information regarding the risks of investing can be found in the Prospectus.
Fixed income funds
Discover more about our range of Fixed Income funds.
| ICAV UCITs V | SRRI Risk Profile |
Max. subordinated debt exposure* |
Max. High yield exposure | Average credit rating | OCF |
| Titan Hybrid Capital Bond Fund | 4 | 100% | 100% | BBB/BB | 0.67% |
| Titan Short Duration IG Income Fund | 1 | 0% | 0% | AAA/AA | 0.30% |
| Titan Core Credit Fund | 4 | 20% | 40% | A/BBB | 0.40% |
View more
About Us
Our integrated approach is structured to offer more choice, support and flexibility for your business.
Investment Solutions
A full range of investment and wealth solutions, backed by expert research, tailored to your mandate.
Titanium Overview
Simple, connective and flexible – an end-to-end technology solution reduces business complexity and drive operational efficiencies.