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, 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 31/12/2018

Trailing 3
Months
1
Yr
3
Yrs
5
Yrs
10
Yrs
Since
Inception
Inception
Date
European Short-Term Government Bond Fund 0.21 -0.56 -0.38 0.20 - 1.23 May 6, 2009
BB Euro Aggregate: 80 % Treasury (1-3 Yr) / 20% Corporate (1-3 Yr) Index 0.38 -0.12 0.12 0.69 - 1.76 May 6, 2009
Statistics Fund Index
Average Maturity 1.8 years 1.9 years
Effective Duration 1.7 years 1.9 years
Yield to Maturity -0.1 -0.1
Current Yield 2.1 2.3
Average Credit Quality A A
# of securities 132 584
Fund Size € 73.3MM
Sector Fund Index Diff.
Government/Sovereign 60.6 55.2 5.4
Supranational 2.1 2.2 -0.1
Industrials 10.4 8.2 2.2
Financial 6.8 7.0 -0.2
Utility 1.1 2.8 -1.6
Non-Corporate 8.3 9.0 -0.7
MBS 1.8 12.0 -10.2
CMBS 0.5 0.5 0.1
ABS 0.7 0.3 0.4
Covered 1.5 3.0 -1.5
Cash 6.2 0.0 6.2
Region Fund Index
Top 10 Holdings % Weight
  • Q2 2018 Performance Review

    The European Short Term Bond Fund returned -0.54% versus the the combined blended benchmark (Bloomberg Barclays European Aggregate: 80% Treasury (1-3yr)/20% Corporate index (1-3yr)/Bloomberg Barclays 1-3 yr Term index) return of -0.32%.

    3-MONTH REVIEW

    • In a reversal from the previous quarter, the Fund’s allocation to Italian bonds was the largest detractor from results, as yields rose sharply on the front end of the curve and investors demanded a premium to hold Italian debt over other sovereign bonds.
    • The Fund’s duration position was slightly negative for the period.

    12-MONTH REVIEW

    • The combination of duration and allocation effects were the main detractors from positive results (-9 bps). Specifically, Italian sovereign bonds negatively impacted results for the trailing period.
    • Security selection was additive, largely due to exposure to industrial holdings, which contributed incremental value to the Fund.
    • Curve positioning was neutral for the period.

     

  • Fund Fact Sheet

    PDF
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