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 44.22 M
NAV Frequency: Daily
Registered in: LUX, CH, IT
Management Fee: 1.2%
NAV as at 30.11.2020: EUR 116.68
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
The good tone to the financial markets at the beginning of November was given by the Biden’s victory in The US, the announcement of vaccines and above all by the corporate bond market: in Europe the High Yield spread tightened to 250 basis points while the Investment Grade one to 45. Due to the return of an attitude risk-on, we changed the open currency diversification hedging completely the US Dollar position; held open instead the Swiss Franc at 2.50% and 3% in other currencies; actually, no other relevant transactions were carried out during this month, except an increase in the short position in German Bund from 3% to 6%; prices were allowed to run and the Erasmus NAV rose by over +1.65%. Others government
bonds (Portugal, Romania, Croatia, Mexico, Brazil, Chile and the 20 years T-Note position for 3.75%) remained at 14%; 13% is the floating rate component: 8% in EUR, 4% in USD, 1% others. The financial sector was flat near 39%: 29% the banking segment, 10% the insurance one; the Hybrid part is around 9%. Stable also the auto manufacturers & components sector near 14%; we still hold the 6% in oil & gas issuers and the 15% in others industrial issuers.