Senior Portfolio Manager
This bond fund aims to generate steady income and achieve above-average investment returns over a full credit cycle, while respecting risk diversification.
The fund invests worldwide mainly in corporate bonds of issuers of good quality (investment grade) denominated in different currencies with various maturities. The focus is on global diversification and selection of individual securities to ensure that the credit spread compensates adequately for the risks involved. Within investment grade, the fund has an emphasis on the mid-yield segment (ratings A+ to BBB-). The fund uses derivative financial instruments, mainly for hedging purposes.
The seasoned and agile investment specialist team applies a research-driven investment process, combining a top-down approach to evaluate geographies and industries with bottom-up analysis to ensure optimal issuer and bond selection. The team takes high-conviction investment decisions, striving to benefit from global diversification and actively exploit market inefficiencies, such as relative-value opportunities, across market segments.
“Global credit offers an attractive running yield to escape the low-yield environment”
Our investment process begins with a top-down review, where we look at the development of key macro- and microeconomic data, taking into account technicals such as new supply and asset flows into or out of the asset class.
Then, with the use of our proprietary tools, we zoom in and identify around 200 attractive issuers from a benchmark universe of more than 2,000.
Once we have determined potential issuers to invest in, we conduct a thorough bottom-up analysis on each potential credit, resulting in a fundamental company view. By bringing this together with our overall market valuation, we come to a buy/hold/sell decision.
We then construct our portfolio based on regional, sector, issuer, duration, and other considerations.
A robust risk-management setup, with control and oversight independent of the primary risk owners, provides a solid cover for our entire investment process.
We aim to select high credit-quality issuers in order to generate income over the long term. As individual regions are in various stages of the credit cycle and perform differently at any given point in time, a global portfolio provides better diversification than a single country or region approach. This can also significantly lessen the impact of local shocks on a portfolio (Brexit, European sovereign crisis etc.).
Furthermore, bonds from the same issuer, denominated in different currencies, often exhibit price discrepancies allowing us to create relative-value opportunities. By identifying the most attractive bonds across the main currencies, we are able to extract value for our investors, with the currency risk fully hedged. Also, a key driver of returns are bonds with the potential of a rating upgrade to the mid-yield range (so called "rising stars"). This gives us the opportunity to invest early and profit from the spread contraction as the bond climbs up the rating ladder.
Global corporate credit markets are diverse across segments and geography. Whilst mostly efficient, multiple drivers within these markets continually offer opportunities for active managers to generate alpha. These opportunities stem from, amongst other things, the rigid constraints under which some investors operate.
The mid-yield range is the dominant and most attractive part of the investment-grade landscape, where the credit spread most compensates for the risk taken.
Christian Hantel manages the fund, supported by the Corporate Credit team headed by Mondher Bettaieb. The team also has at its disposal the full capabilities of the Zurich based Fixed Income boutique.
This optimal team structure enables proactive early idea generation and implementation.
All data is as at Aug 31 2020 unless otherwise indicated.
|HG (hedged) EUR||-0.5%||4.5%||3.8%||21.8%|
|Sep 01 2015 - Aug 31 2016||Sep 01 2016 - Aug 31 2017||Sep 01 2017 - Aug 31 2018||Sep 01 2018 - Aug 31 2019||Sep 01 2019 - Aug 31 2020|
|HG (hedged) EUR||NA||1.9%||-1.8%||9.3%||4.3%|
|Yield to maturity||2.4%||1.7%|
|Yield to maturity after hedge||2.6%||1.9%|
|Yield to worst||2.3%||1.6%|
|Number of positions||254.0||15'569|
|Number of issuers||133.0||2'173|
|Active Share (country, issuer, ISIN)||16% / 74% / 98%|
All data is as at Sep 29 2020 unless otherwise indicated.
|Portfolio Manager||Christian Hantel|
|Share Class Currency||EUR|
|End of fiscal year||31 August|
|Index||ICE BofAML Global Corporate Index (G0BC) hedged into EUR|
|Share Class Launch date||Oct 29 2015|
|Swinging single pricing||Yes|
|Fund Registrations||AT, CH, DE, ES, FI, FR, GB, IT, LU, NL, NO, PT, SE, SG|
|Share Class Registrations||AT, CH, DE, ES, FR, IT, LU, SG|
|Highest since launch||122.93|
|Lowest since launch||97.82|
|Fund volume in mln.||USD 675.28|
|Share class volume in mln.||EUR 172.91|
|TER||0.54% (Feb 28 2020)|
|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|
|Share class||Currency||ISIN||Distrib.||Type||Launch date||Management fee||TER||TER Date|
|A||USD||LU1395536086||Dist||Retail||May 09 2016||1.10%||1.36%||Feb 28 2020|
|AH (hedged)||CHF||LU1395536169||Dist||Retail||May 09 2016||1.10%||1.42%||Feb 28 2020|
|AH (hedged)||EUR||LU1395536243||Dist||Retail||May 09 2016||1.10%||1.42%||Feb 28 2020|
|AHN (hedged)||CHF||LU1683488198||Dist||Retail||Oct 12 2017||0.34%||0.87%||Feb 28 2020|
|AHN (hedged)||EUR||LU1683488271||Dist||Retail||Oct 12 2017||0.34%||0.87%||Feb 28 2020|
|AN||USD||LU1683487976||Dist||Retail||Oct 12 2017||0.34%||0.81%||Feb 28 2020|
|B||USD||LU1395536599||Accum||Retail||May 09 2016||1.10%||1.36%||Feb 28 2020|
|G||USD||LU1309987045||Accum||Institutional||Oct 29 2015||0.34%||0.48%||Feb 28 2020|
|H (hedged)||EUR||LU1395536755||Accum||Retail||May 09 2016||1.10%||1.42%||Feb 28 2020|
|HG (hedged)||EUR||LU1291112750||Accum||Institutional||Oct 29 2015||0.34%||0.54%||Feb 28 2020|
|HG (hedged)||CHF||LU1831168353||Accum||Institutional||Jun 29 2018||0.34%||0.54%||Feb 28 2020|
|HI (hedged)||CHF||LU1395536912||Accum||Institutional||May 09 2016||0.38%||0.83%||Feb 28 2020|
|HN (hedged)||EUR||LU1734078667||Accum||Retail||Dec 11 2017||0.34%||0.87%||Feb 28 2020|
|I||USD||LU1395537134||Accum||Institutional||May 09 2016||0.38%||0.77%||Feb 28 2020|
|N||USD||LU1683487893||Accum||Retail||Oct 12 2017||0.34%||0.81%||Feb 28 2020|
* TER includes performance fee where applicable
All data is as at Aug 31 2020 unless otherwise indicated.
|Factsheets & Commentaries|
|Monthly Commentary||Aug 2020|
|Product Flyer||Oct 2019|
|AGM EGM invitation||Jan 2020|
|Articles of Association||Apr 2016|
|Notification to Investors||Apr 2020|
|Sales Prospectus||Dec 2019|
|Annual Report||Aug 2019|
|Dividend Payout||Jan 2019|
|Semi-Annual Report||Feb 2020|
|Holiday Calendar 2020||Jan 2020|
|List of Active Retail Share Classes||Dec 2018|
|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
Investment universe may involve investments in countries where the local capital markets may not yet qualify as recognised capital market
Investments in foreign currencies are subject to currency fluctuations
Mid-yield bonds may be more speculative investments than bonds with a higher rating due to higher credit risk, higher price fluctuations, a higher risk of loss of capital deployed
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
The structure of ABS/MBS and the pools backing them might be intransparent which exposes the subfund to additional credit and prepayment risks (extension or contraction risks) depending on which tranche of ABS/MBS is purchased by the subfund
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