Objective

Seeks sustainable income with modest capital appreciation. Focuses primarily on investment-grade sovereign, supranational, corporate and mortgage debt securities, including securitizations, worldwide.

Strategy

Emphasizes worldwide country and issuer exposure to companies with improving financial health relative to their peers; combines quantitative and fundamental analysis in seeking to optimize portfolio structure across country, currency, duration and yield curve exposures — uses top down/ bottom up approach to determine sectors and issuers

Fund Facts
Asset Manager
  • Degroof Petercam Asset Management, Brussels, Belgium
Benchmark Bloomberg Barclays Global Aggregate Bond Index
Fund Inception Date July 12, 2010
Mimimum Investment €50,000
Expense Ratio 0.85
ISIN IE00B3DD4X73

Annual Average Total Returns
(%) as of 30/09/2019

Trailing 3
Months
1
Yr
3
Yrs
5
Yrs
10
Yrs
Since
Inception
Inception
Date
World Bond Fund 4.19 14.05 2.39 4.41 * 3.47 12/07/2010
Bloomberg Barclays Global Aggregate Bond Index 5.20 14.63 2.62 5.04 * 4.21 12/07/2010

Characteristics as of 30/09/2019

Statistics Fund Index
Average Maturity 9.8 years 8.8 years
Effective Duration 6.6 years 7.1 years
Yield to Maturity 1.9% 1.3%
Current Yield 2.5% 2.4%
Average Credit Quality A A+
# of securities 140 24,215
Fund Size € 208.6MM
Effective Duration Fund Index
0-1 years 9.4 1.9
1-3 years 18.4 28.7
3-5 years 16.1 22.0
5-7 years 21.3 12.7
7-10 years 5.6 11.9
10-20 years 25.4 17.6
> 20 Years 3.7 5.2
Credit Quality Fund Index
AAA 36.8 39.3
AA 4.9 15.2
A 20.1 28
BBB/BAA 30.8 17.5
< BBB/NR 5.8 0.0
Cash 1.6 0.0
Sector Fund Index Diff.
Treasuries 50.8 54.2 -3.4
Agency 0.3 6.1 -5.8
Industrials 19.1 10.3 8.7
Finance 21.6 7.0 14.5
Local Authority 0.0 2.9 -2.9
Utilities 3.1 1.5 1.6
Supranational 0.3 2.1 -1.8
Sovereign 3.3 1.3 2.0
Covered 0.0 2.5 -2.5
MBS 0.0 11.1 -11.1
CMO 0.0 0.0 0.0
CMBS 0.0 0.9 -0.9
ABS 0.0 0.2 -0.2
Cash 1.6 0.0 1.6
Country Fund Index
France 5.7 5.7
Germany 4.1 4.3
Italy 1.1 3.6
United Kingdom 4.3 5.2
Japan 1.1 16.4
Canada 2.4 3.3
United States 45.1 40.1
Other Developed Europe 21.6 11.3
Other Developed Asia 2.8 2.0
Other Emerging Asia 1.0 4.7
Other Emerging Markets 10.8 3.2
Currency Bloc Fund Index
Dollar 45.7 45.3
Euro 35.8 23.7
UK Pound 1.9 4.6
Yen 0.0 16.1
Other* 16.5 10.3
  • Q3 2019 Performance Review

    3-MONTH REVIEW

    • The negative impact on relative performance from duration positioning in Q3 is explained by foreign currency exchange allocation and hedging decisions, mostly via the underweight to Japanese yen.
    • Yield Curve positioning was additive for the quarter.
    • Sector allocation added, with an overweight to financial institutions the primary driver of positive contribution.
    • Security selection detracted as below market returns in corporate bonds was the primary driver.

     

    12-MONTH REVIEW

    • The Fund’s large negative contribution to relative return over the past 12 months from duration results from cash management and foreign currency exchange hedging. Being underweight the US dollar and Japanese yen on average for the period explains most of that portion of relative performance.
    • Yield curve positioning benefitted the portfolio, as longer maturities produced the highest contributions to returns.
    • Sector allocation also provided strong results as the Fund’s overweight in Corporates were beneficial to the portfolio.
    • Security selection was relatively flat but did provide a slight contribution to outperformance, most notably in Treasuries.
  • Fund Fact Sheet

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