For professional investors only. Capital at risk. 

What do you see as the big opportunities and risks for investors in 2026? How are you responding to these in a particular strategy?  

At the start of 2026, we positioned the strategy with a deliberately defensive stance, holding elevated liquidity of around 30%. This reflected our view that credit markets were entering the year with tight valuations, limited margin for error, heightened macro fragility and concerns with certain sections of the credit market, making flexibility particularly valuable. Since then, geopolitical developments in the Middle East, rising commodity prices and the re-pricing of software companies facing AI disruption have driven higher volatility and wider dispersion across credit markets. In response, we have maintained high liquidity and implemented macro hedges to help mitigate broader market risks while preserving the ability to deploy capital selectively. We believe this environment presents attractive opportunities for liquid strategies that can identify and capture credit dislocations rather than relying primarily on market beta. The fund is built around a focused, high conviction portfolio of approximately 30 names, targeting situations with asymmetric risk-reward—where downside is well-underwritten and upside is supported by clear catalysts. This approach has supported a strong start to 2026, delivering differentiated, low-correlation returns, outperforming opportunistic-credit peers, credit market indices. 

What guiding principles shape your approach to transforming credit market dispersion into investment opportunity? 

We believe markets can temporarily mis-price risk as credit events take place. This can lead to forced selling and a new buyer base, which will require a risk premium. It’s these dislocations that the L&G Global Special Situations Fund is focused on. We execute on a concentrated set of high-conviction ideas, prioritising depth, value, and disciplined risk-taking. Selection is driven by bottom-up credit work, but macro factors guide where and when we deploy capital. We invest where we believe a credit’s fundamentals are misunderstood, sentiment is weak, and a margin of safety exists. This disciplined approach allows us to turn market mispricings into potential opportunities, as we seek to deliver value for our clients. 

What is L&G’s capability in managing special situations credit? 

L&G’s Asset Management business has established a strong capability in managing global special situations credit, with an active track record since 2018. Fixed income is a core strength, supported by a team of nearly 90 investment professionals averaging 18 years’ experience. The group includes over 40 research analysts covering the full credit spectrum, from investment grade to distressed, and benefits from dedicated legal expertise for complex restructurings. The team also draws on insights from economists and investment strategists across London, Chicago, and Hong Kong. The strategy is led by Adil Mirza, who brings more than two decades of experience, alongside portfolio management support from John Ryan, Head of Global High Yield. This collaborative, cross-asset approach ensures portfolios are  built on thoroughly tested ideas and benefit from the breadth of expertise within L&G. By combining deep research, disciplined risk management, and global perspective, we believe L&G is well positioned to identify and capture potential opportunities in special situations credit, seeking to deliver differentiated outcomes for clients. 

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Key Risks 

The value of an investment and any income taken from it is not guaranteed and can go down as well as up, and the investor may get back less than the original amount invested. Past performance is not a guide to future performance. The details contained here are for information purposes only and do not constitute investment advice or a recommendation or offer to buy or sell any security. The information above is provided on a general basis and does not take into account any individual investor’s circumstances.  Any views expressed are those of L&G as at the date of publication. Not for distribution to any person resident in any jurisdiction where such distribution would be contrary to local law or regulation. Please refer to the fund offering documents which can be found at  https://fundcentres.landg.com/ 

This financial promotion is issued by Legal & General Investment 

Management Ltd. Registered in England and Wales No. 02091894. 

Registered office: One Coleman Street, London EC2R 5AA. Authorised and regulated by the Financial Conduct Authority.