Erasmus Bond is a conservative bond fund invested in high-quality government and corporate securities, at least 2/3 Investment Grade bonds, with a wide diversification of geographical exposures and sectors. Keeping as a fixed starting point the capital preservation, the aim is the creation of regular and constant yields over the investment horizon. The fund may hold no more than 10% in third parties funds.
General Data
Domicile: Luxembourg
Legal Structure: SICAV Ucits V
Fund Manager: SWM SA
Custodian: State Street, LUX
Reference Currency: EUR
AuM: EUR 43.84 M
NAV Frequency: Daily
Registered in: LUX, CH, IT
Management Fee: 1.2%
NAV as at 31.03.2021: EUR 116.43
ISIN:
EUR (A): LU0379558173
CHF (A) Hedged: LU1005193302
USD (A) Hedged: LU1005193641
Share Type: Accumulation
Investor’s profile
Targeting investors who expect regular and constant growth in the long term with low volatility, accepting some limited price fluctuations in the reference period.
Fund manager insights
In Erasmus Bond Fund we increased during this month the Investment Grade investments: near 73% of the portfolio is now invested there and 18% in High Yield; in general, investments outside OECD Countries weigh about 15%. We reduced the government bonds component from over 17% to 11%: Portugal, Romania (halved), Croatia (now totally sold), Mexico, Brazil, Chile, Indonesia (now totally sold), slightly increased USA; we hold the short position in German Bund for 6%. The sector allocation see the weight’s strong reduction of the financial one to about 32%, of which 24% in the banking segment and 8% in
insurance issuers, and the increase of the industrial one: the auto manufacturers & components sector represents the 14%, oil & gas and energy near 11%, finally about 16% is invested in others cyclical issuers. About the geographical allocation, most of the issuers are established in Western Europe (59%), then in North America (24%) and in Emerging Markets: 7.5% in South America, 5% in Eastern Europe and 2.5% in Asia Pacific. The open currency diversification is: 5.5% in US Dollar, 3.5% in AUD, 3.5% in GBP, others for 2.5%. The average duration is quite stable at 3.75 years, while the average yield of the portfolio rose over 2% in March.