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 31/03/2021

Trailing 3
Months
1
Yr
3
Yrs
5
Yrs
10
Yrs
Since
Inception
Inception
Date
European Short-Term Government Bond Fund -0.31 0.32 -0.31 -0.32 1.04 0.96 5/5/2009
BB Euro Aggregate: 80 % Treasury (1-3 Yr) / 20% Corporate (1-3 Yr) Index -0.19 0.83 0.1 0.14 1.43 1.47

Characteristics as of 31/12/2020

Statistics Fund Index
Average Maturity 1.8 years 1.9 years
Effective Duration 1.8 years 1.9 years
Yield to Maturity -0.5% -0.5%
Current Yield 1.5% 1.6%
Average Credit Quality A A
# of securities 117 877
Fund Size € 49.9MM
Credit Quality Fund Index
AAA/Aaa 20.1 20.4
AA/Aa 29.5 29
A 7.7 9.7
BBB/Baa 41.8 40.8
< BBB/BAA 0.8 0.1
Effective Duration Fund Index
0 - 1 Years 8.0 4.2
1 - 3 Years 91.5 95.8
3 - 5 Years 0.5 0.0
5 - 7 Years 0.0 0.0
Country Exposure Fund Index
France 21.6 21.9
Germany 15.5 18
Italy 23.3 21.8
United Kingdom 2.3 2.2
Japan 0.0 0.2
Canada 0.0 0.2
United States 3.3 2.9
Other Developed Europe 34.0 31.0
Other Developed Asia 0.0 0.6
Other Emerging Asia 0.0 0.0
Other Emerging Markets 0.0 1.0
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
  • Q4 2020 Performance Review

    12-Month Review

    • Duration remained short relative to the benchmark. However, the yield curve positioning added value for the trailing period.
    • Allocation adversely affected results, particularly across government futures exposure.
    • Security selection provided added value, which offset the negative impact created by sector allocation.

    3-Month Review

    • Duration positioning remained unchanged slightly shorter relative to the benchmark. The combined effect of duration, curve and sector allocation was neutral for the quarter.
    • Security selection was detrimental, as results from Sovereign issues were mostly negative for the period. In addition, Financial holdings hurt the Fund. Positive results from Industrials and Utilities were additive.

    Current Positioning

    • The overall economic position remains weak across Europe as coronavirus cases increase and several economies slow for a second time.
    • The Fund continues to hold significant exposure to Italian, French, German and Spanish bonds.
    • Duration remains slightly shorter than the benchmark.
    • Yield is modestly underweight relative to the benchmark.
    • The corporate bond exposure is below benchmark weight. Main industry exposures at the end of the quarter were Banking, Automotive and Utility.
  • Fund Fact Sheet

    PDF
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