+41 91 960 99 60 info@swisswealth.ch

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.

07General Data

Domicile: Luxembourg
Legal Structure: SICAV Ucits V
Fund Manager: SWM SA
Custodian: State Street, LUX
Reference Currency: EUR
AuM: EUR 35.57 M
NAV Frequency: Daily
Registered in: LUX, CH, IT
Management Fee: 1.2%
NAV as at 31.07.2022: EUR 108.43

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

Unfortunately, the honeymoon of the markets seems to have suddenly stopped after mid-August; the reasons are substantially the same of the previous months. Fortunately, we reduced the duration once again to 3.30 years, opening a 6% short future position in 10 years Treasury Note, switching some issues on shorter maturities, finally leaving in cash a 5.5% of the portfolio resulting from new subscriptions. Corporate spreads have started to widen again. Following the continuous rise in rates and because of their greater evaluability compared to other stocks, we continue to favor the banking sector – now near 35% – while the weight of the insurance one was further lowered to 5% from 7%. To date, the portfolio holds also 6% in Auto Manufacturers issues, 5% in Energy (Oil & Gas), 3.5% in Engineering & Construction, 3% in Chemicals, 2% in Airlines. We slowly reduce position outside Euro as it goes down: USD is at 3.25%; we completely hedged the 4.50% in GBP at the end of June. The average portfolio’s coupon reached 4.30% and is quite stable, however we have improved the average yield to maturity, over 4.75%.