Objective

Seeks income-producing instruments: European government and high quality European corporate bonds

Strategy

Diversify across investment grade short-term fixed-income securities, primarily direct government obligations; these may include discount and zero coupon instruments, money market funds and exchange-traded government futures contracts and forward currency exchange contracts for the purposes of managing portfolio duration, yield curve positioning or trading execution on a more cost-effective basis

Fund Facts
Asset Manager
  • ARCA Fondi SGR SpA, Milan, Italy(Since 1/1/95)
Benchmark Bloomberg Barclays Euro Aggregate: 80 % Treasury (1-3 Yr) Index / 20% Corporate (1-3 Yr) Index
Fund Inception Date May 6, 2009
Mimimum Investment €50,000
Expense Ratio 0.45
ISIN IE00B3R5XB01

Additional Facts

Effective June 1, 2017, the benchmark for the European Short Bond Fund was changed to the 80% Bloomberg Barclays Euro Aggregate Treasury (1-3 Yr) Index/20% Bloomberg Barclays Euro Aggregate Corporate (1-3Yr) Index. For periods prior to June 1, 2017, the applicable benchmark was the Bloomberg Barclays European Government 1-3 Year Term Index.

Annual Average Total Returns
(%) as of 30/06/2019

Trailing 3
Months
1
Yr
3
Yrs
5
Yrs
10
Yrs
Since
Inception
Inception
Date
European Short-Term Government Bond Fund 0.22 0.42 -0.26 0.01 1.19 1.20 06/05/2009
BB Euro Aggregate: 80 % Treasury (1-3 Yr) / 20% Corporate (1-3 Yr) Index 0.32 0.74 0.21 0.49 1.71 1.73 06/05/2009

Characteristics as of 30/06/2019

Statistics Fund Index
Average Maturity 2.2 years 2.0 years
Effective Duration 1.9 years 1.9 years
Yield to Maturity -0.1% -0.3%
Current Yield 1.8% 2.0%
Average Credit Quality A- A
# of securities 120 693
Fund Size € 49.0MM
Credit Quality Fund Index
AAA/Aaa 15.3 19.0
AA/Aa 27.2 29.8
A 6.4 8.5
BBB/Baa 49.7 42.7
< BBB/BAA 0.7 0.1
Cash 0.8 0.0
Effective Duration Fund Index
0 - 1 Years 17.4 4.7
1 - 3 Years 80.7 95.3
3 - 5 Years 1.5 0.0
5 - 7 Years 0.4 0.0
Country Exposure Fund Index
France 22.3 22.9
Germany 13.4 17.4
Italy 28.7 21.6
United Kingdom 3.3 2.9
Japan 0.0 0.2
Canada 0.0 0.2
United States 2.0 2.7
Other Developed Europe 29.8 30.6
Other Developed Asia 0.0 0.7
Other Emerging Asia 0.0 0.1
Other Emerging Markets 0.4 0.7
Currency Bloc Fund Index
Dollar 0.0 0.0
Euro 100.0 100.0
UK Pound 0.0 0.0
Other 0.0 0.0
  • Q2 2019 Performance Review

    3-MONTH REVIEW

    • The Fund’s shorter duration detracted from relative performance as short-term rates declined during the period.
    • Curve positioning was slightly positive.
    • Sector allocation was neutral for the trailing three months.
    • Security selection was beneficial due to the Fund’s continued overweight position in Italian bonds.

    12-MONTH REVIEW

    • Duration was defensively positioned throughout the year; however, rates declined, which caused a drag on results.
    • Curve positioning was additive.
    • Sector allocation was negative due primarily to the Fund’s exposure to Financials and poor performing French and German bonds.
    • Security selection was positive as 1-year, 2-year and 4-year issues performed well. Conversely, securities in the 3-year maturity bucket offset most of the gains.

     

  • Fund Fact Sheet

    PDF
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