TwentyFour Asset Management Investment Grade

Vontobel Fund - TwentyFour Absolute Return Credit Fund

ISIN
LU1267852082
Valor
29030420

Fund strategy

Investment objective

This bond fund aims to achieve a positive absolute return over a period of three years by keeping a modest level of volatility, while respecting risk diversification.


Key features

The fund can invest worldwide, with a focus on Europe, in corporate bonds and similar fixed-interest and floating-rate securities in various currencies of diverse issuers of good quality (investment grade). The fund can use derivative financial instruments for hedging purposes.


Approach

The experienced and diverse investment team takes high-conviction decisions based on rigoros macro-economic, technical and issuer analyses. In line with their continuous assessment of market conditions and future developments, the team allocates interest-rate and cedit risks with the aim to benefit from any market environment. They select those securities and instruments within the investment universe in which they see the most rewarding yield and/or hedging values. The team actively adapts the portfolio to invest in attractive opportunities whenever they occur while keeping risks under control.

115.91
NAV
0.56%
Performance YTD
As at Aug 10 2020

Why invest?

  • Focus on short dated triple-B rated bonds aims to capture nearly all the returns of broader credit indices, but with a fraction of the drawdowns
  • Short dated, investment grade bonds have statistically proven through every market cycle they have provided the very best risk-adjusted returns within fixed income
  • Rigorous back-testing before launch in 2015 proved the Fund’s strategy would have delivered consistent returns even in poor years for credit such as 2008 and 2011
  • Since launch the Fund has consistently outperformed its return target, with just 1.5% daily annualized volatility

An easy to understand, long-only, unlevered fund that targets the very best risk-adjusted returns within fixed income.

Fund characteristics

  • Target returns of 250bp over Libor after fees, with volatility below 3% and limited hedging and derivative use
  • A genuinely long only, unlevered bond fund which is easy to understand and designed to keep volatility low
  • A minimum of two-thirds of the Fund will be invested in short dated investment grade bonds at all times
  • Strict limits on the asset classes, maturities, ratings and names the Fund can buy in order to help lower risks, limit volatility and still provide real opportunities to add value
  • Strong focus on stock selection seeking to generate alpha and lower risks. All bond positions have to pass a rigorous screening process to show that they have the ability to deliver good return potential with low expected volatility
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Investment universe

  • A minimum of two-thirds of the Fund will be invested in investment grade bonds with a maturity of five years or lower, which our research has shown have proven through every market cycle provided the very best risk-adjusted returns within fixed income
  • Beyond this core portfolio, there are strict risk constraints – a maximum of 20% of the Fund can be invested in investment grade European ABS, 33% in government bonds, and 33% in sub-investment grade debt at any one time
  • We avoid frequent hedging as we believe it is too expensive and places unnecessary pressure on fund managers to call every market twist and turn with absolute precision. We use tactical rates and credit hedges to better control risk around infrequent extreme events
  • We have not designed the Fund to achieve the highest total return our skill set allows, irrespective of risk, because that is unpredictable. Instead we have set a lower, predictable but still attractive return target, which can be achieved by using our skill set to its maximum at an acceptable level of risk

Investment team

From the beginning we built our team of investment professionals to reflect the structure of today’s fixed income market. From structuring and ratings specialists to trading and investment banking, we have people who know the bond markets inside out. Our team is deliberately drawn from a diverse range of nationalities and cultures. This is how we look to escape the echo chamber, using diverse insights from people who are not having the same conversations and reading the same press.

All data is as at Jun 30 2020 unless otherwise indicated.

Daily Performance

Periodic Performance

1M YTD 3Y SI
I GBP 0.6% -0.4% 1.8% 14.9%

Rolling Performance

Jul 01 2015 - Jun 30 2016 Jul 01 2016 - Jun 30 2017 Jul 01 2017 - Jun 30 2018 Jul 01 2018 - Jun 30 2019 Jul 01 2019 - Jun 30 2020
I GBP NA 6.3% 1.2% 2.9% 1.2%

Annual Performance

Risk Data

Portfolio
Volatility 1.2%
Sharpe ratio 0.9
Interest rate duration 1.6
Credit duration 1.7
Average rating A-
Number of positions 93.0
[Daily since inception]
Past performance is not a reliable indicator of current or future performance. Performance data does not take into account any commissions and costs charged when shares of the fund are issued and redeemed, if applicable. The return of the fund may go down as well as up due to changes in rates of exchange between currencies. The value of the money invested in the fund can increase or decrease and there is no guarantee that all or part of your invested capital can be redeemed.

All data is as at Aug 10 2020 unless otherwise indicated.

Fund data
Portfolio Manager TwentyFour Asset Management LLP
Fund Domicile Luxembourg
Fund Currency GBP
Share Class Currency GBP
End of fiscal year 31 August
Share Class Launch date Aug 28 2015
Distribution type Accum
Fund Registrations AT, CH, DE, ES, FI, FR, GB, IE, IT, LI, LU, NL, NO, PT, SE, SG
Share Class Registrations CH, FI, GB, LU, NO, SE, SG
Nav Information
Highest since launch 116.09
Lowest since launch 98.79
Fund volume in mln. GBP 1,932.39
Share class volume in mln. GBP 11.84
Fees And Expenses
Management fee 0.40%
TER 0.51% (Feb 28 2020)
Identifiers
ISIN LU1267852082
Valor 29030420
Bloomberg VOTARCI LX
WKN A2DXBK
Parties
Depository RBC Investor Services Bank S.A.
Management Company Vontobel Asset Management S.A.
Swiss Paying Agent Bank Vontobel AG
Swiss Representative Vontobel Fonds Services AG

Available Share Classes

Share class Currency ISIN Distrib. Type Launch date Management fee TER TER Date
AH (hedged) CHF LU1380459195 Dist Retail Mar 23 2016 0.80% 1.01% Feb 28 2020
AH (hedged) USD LU1380459351 Dist Retail Mar 23 2016 0.80% 1.01% Feb 28 2020
AH (hedged) EUR LU1380459278 Dist Retail Mar 23 2016 0.80% 1.01% Feb 28 2020
AHN (hedged) EUR LU1683487620 Dist Retail Oct 12 2017 0.40% 0.61% Feb 28 2020
AHN (hedged) CHF LU1734078154 Dist Retail Dec 11 2017 0.40% 0.61% Feb 28 2020
AI GBP LU1267852249 Dist Institutional Aug 28 2015 0.40% 0.51% Feb 28 2020
AQHN (hedged) EUR LU1331789450 Dist Retail Dec 18 2015 0.40% 0.61% Feb 28 2020
AQHNG (hedged) USD LU1410502493 Dist Retail May 18 2016 0.25% 0.46% Feb 28 2020
AQN GBP LU1331789377 Dist Retail Dec 18 2015 0.40% 0.55% Feb 28 2020
AQNG GBP LU1368730674 Dist Retail Feb 26 2016 0.25% 0.40% Feb 28 2020
G GBP LU1273680238 Accum Institutional Aug 28 2015 0.25% 0.36% Feb 28 2020
HI (hedged) CHF LU1599320444 Accum Institutional Apr 25 2017 0.40% 0.57% Feb 28 2020
HI (hedged) EUR LU1331789617 Accum Institutional Dec 18 2015 0.40% 0.57% Feb 28 2020
HI (hedged) AUD LU2191833487 Accum Institutional Jul 09 2020 0.40%
HN (hedged) EUR LU1734078238 Accum Retail Dec 11 2017 0.40% 0.61% Feb 28 2020
HN (hedged) USD LU1767066357 Accum Retail Feb 09 2018 0.40% 0.61% Feb 28 2020
I GBP LU1267852082 Accum Institutional Aug 28 2015 0.40% 0.51% Feb 28 2020
N GBP LU1267852595 Accum Retail Aug 28 2015 0.40% 0.55% Feb 28 2020
Click here to see an overview of our shareclass naming convention.

* TER includes performance fee where applicable

All data is as at Jun 30 2020 unless otherwise indicated.

Rating Structure

Document Date DE EN ES FR IT
Factsheets & Commentaries
Factsheet Jul 2020
Monthly Commentary Jul 2020
Brochures
Product Flyer Oct 2019
KIIDs
KIID Aug 2020
Legal Documents
Articles of Association Apr 2016
Notification to Investors Jan 2020
Sales Prospectus Dec 2019
Financial Reports
Annual Report Aug 2019
Dividend Payout Jan 2019
Semi-Annual Report Feb 2020
Dealing Information
Holiday Calendar 2020 Jan 2020
List of Active Retail Share Classes Dec 2018
Policies
Sanctioned Countries Sep 2016
Shareclass Naming Convention Nov 2019
  • Limited participation in the potential of single securities

  • Success of single security analysis and active management cannot be guaranteed

  • It cannot be guaranteed that the investor will recover the capital invested

  • Derivatives entail risks relating to liquidity, leverage and credit fluctuations, illiquidity and volatility

  • Interest rates may vary, bonds suffer price declines on rising interest rates

  • High-yield bonds (non-investment-grade bonds/junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher-rated bonds

Morningstar rating: © 2020 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.