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 31/03/2019

Trailing 3
Months
1
Yr
3
Yrs
5
Yrs
10
Yrs
Since
Inception
Inception
Date
World Bond Fund 5.30 5.07 1.42 4.48 * 2.81 July 12, 2010
Bloomberg Barclays Global Aggregate Bond Index 4.05 9.11 1.99 5.27 * 3.63 July 12, 2010

Characteristics as of 31/03/2019

Statistics Fund Index
Average Maturity 9.4 years 8.8 years
Effective Duration 5.0 years 7.0 years
Yield to Maturity 2.5% 1.8%
Current Yield 2.3% 3.0%
Average Credit Quality A AA-
# of securities 148 22,971
Fund Size € 175.7MM
Effective Duration Fund Index
0-1 years 11.3 1.6
1-3 years 10.8 24.7
3-5 years 34.0 25.2
5-7 years 28.3 15.4
7-10 years -9.8 11.9
10-20 years 24.4 17.4
> 20 Years 1.2 3.8
Credit Quality Fund Index
AAA 28.9 40.1
AA 4.9 15.9
A 21.4 26.6
BBB/BAA 36.3 17.4
< BBB/NR 7.2 0.0
Cash 1.2 0.0
Sector Fund Index Diff.
Treasuries 45.0 54.2 -9.1
Agency 4.1 5.3 -1.2
Industrials 17.0 10.4 6.6
Finance 26.5 7.0 19.6
Local Authority 0.0 3.0 -3.0
Utilities 2.2 1.5 0.8
Supranational 0.3 2.2 -1.9
Sovereign 3.5 1.2 2.3
Covered 0.0 2.7 -2.7
MBS 0.0 11.5 -11.5
CMO 0.0 0.0 0.0
CMBS 0.0 0.8 -0.8
ABS 0.0 0.3 -0.3
Cash 1.2 0.0 1.2
Country Fund Index
France 6.7 5.9
Germany 1.6 4.5
Italy 3.9 3.5
United Kingdom 6.1 5.5
Japan 1.2 16.9
Canada 2.1 3.4
United States 34.7 40.2
Other Developed Europe 25.3 11.8
Other Developed Asia 3.3 2.2
Other Emerging Asia 1.2 3.0
Other Emerging Markets 13.9 3.1
Currency Bloc Fund Index
Dollar 36.8 45.5
Euro 42.1 24.2
UK Pound 2.2 4.9
Yen 0.0 16.6
Other* 18.8 8.7
  • Q1 2019 Performance Review

    3-MONTH REVIEW

    • The Fund’s duration benefited from longer exposures, specifically across Euro currencies, to add ~9 bps to relative performance.
    • Curve positioning was additive ~13 bps for the period, given the strong performance in 10-year maturities. A parallel shift to the downside of the yield curve for USD exposure was beneficial.
    • Sector allocation resulted in approximately +46 bps, led by non-core EMU government bonds exposure.
    • Security selection produced the largest excess return (~ 56 bps) as positive bond momentum accelerated on account of declining interest rates in Germany and the US.

    12-MONTH REVIEW

    • The Fund’s higher relative weight to longer duration Euro currency, benefited results (~ 60 bps) as rates declined sharply across the eurozone.
    • Yield curve positioning benefitted the portfolio ~15 bps for the period, as 10-year maturities produced the highest contribution to returns.
    • Sector allocation provided strong results (~39 bps), high allocation to non-core EMU government bonds outperformed for the period. US dollar investments were additive.
    • Security selection was the largest detractor (~-528 bps).
  • Fund Fact Sheet

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