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 31/03/2020

Trailing 3
Months
1
Yr
3
Yrs
5
Yrs
10
Yrs
Since
Inception
Inception
Date
World Bond Fund -5.68 0.67 0.41 0.50 * 2.59 11/7/2010
Bloomberg Barclays Global Aggregate Bond Index 1.97 6.63 2.67 2.20 * 3.94

Characteristics as of 31/03/2020

Statistics Fund Index
Average Maturity 6.9 years 8.7 years
Effective Duration 5.4 years 7.0 years
Yield to Maturity 2.4% 1.2%
Current Yield 2.2% 2.3%
Average Credit Quality A+ AA-
# of securities 153 25,047
Fund Size € 227.2MM
Effective Duration Fund Index
0-1 years 19.6 4.2
1-3 years 25.5 29.9
3-5 years 11.8 18.8
5-7 years 14.3 12.9
7-10 years 13.0 11.6
10-20 years 10.2 16.7
> 20 Years 5.5 5.9
Credit Quality Fund Index
AAA 42.5 40.0
AA 6.3 14.7
A 19.8 28.9
BBB/BAA 27.8 16.3
< BBB/NR 3.6 0.2
Sector Fund Index Diff.
Treasuries 53.8 54.7 -0.8
Agency 0.2 6.9 -6.6
Industrials 17.3 9.7 7.6
Finance 20.3 6.7 13.6
Local Authority 0.0 2.8 -2.8
Utilities 2.1 1.4 0.7
Supranational 0.0 2.1 -2.1
Sovereign 3.5 1.3 2.2
Covered 0.0 2.4 -2.4
MBS 0.0 11.0 -11
CMO 0.0 0.0 0.0
CMBS 0.0 0.9 -0.9
ABS 0.0 0.2 -0.2
Cash 2.8 0.0 2.8
Country Fund Index
France 6.9 5.5
Germany 5.6 4.2
Italy 0.4 3.4
United Kingdom 4.3 5.0
Japan 1.0 15.8
Canada 3.4 3.1
United States 41.4 40.5
Other Developed Europe 21.2 10.9
Other Developed Asia 5.8 1.9
Other Emerging Asia 0.7 6.6
Other Emerging Markets 9.4 3.0
Currency Bloc Fund Index
Dollar 42.8 45.6
Euro 36.6 22.7
UK Pound 1.8 4.5
Yen 0.0 15.5
Other* 18.8 8.0
  • Q1 2020 Performance Review

    12-Month Review

    • Yield curve positioning detracted. Underweight to long US Treasury and German government debt detracted as safe-haven bonds meaningfully outperformed other fixed income sectors.
    • Sector allocation also detracted due to the overweight to corporate credit and underweight to certain safe-haven government issued debt.
    • Security selection was the biggest detractor, due to exposure to certain emerging market securities.

    3-Month Review

    • Yield curve positioning detracted. Underweight exposure to long US duration hurt relative results.
    • Sector allocation detracted. Overweight to corporate credit hurt as pervasive broad-based selling pushed spreads to the widest levels since the Global Financial Crisis resulting in dramatic price declines across maturities and quality.
    • Security selection was the biggest detractor,especially within government bonds. Exposure to emerging market countries meaningfully detracted as risk off sentiment and subsequent selling coupled with a liquidity crisis put downward pressure on prices.

    Current Positioning

    • In general, the Fund runs an overall 2.25%monthly VaR risk measure. This is consistent with the 2.10% measure at the end of the first quarter. The inputs to the multi-factor model are balanced across time, so the recent spike in volatility, which occurred within a relatively short period of time, had little impact and the VaR management framework and did not trigger forced trading activity during the March turbulence.
    • There will be limited repositioning until there is a clearer view of the future landscape.
    • The Fund’s effective duration was roughly the same as it was at the start of the quarter and notably shorter than the benchmark duration.
    • The Fund has balanced exposures across the US Treasury curve with a mix of high-quality US investment grade credit and Emerging Market investment grade debt. It continues to favor inflation-linked bonds.
  • Fund Fact Sheet

    PDF
Please review our important disclosures.