CB Accent Lux – Erasmus Bond – Eur

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.

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.

Factsheet: CB Accent Lux – December Erasmus Bond

Fund manager insights

After the rebound of the portfolio of about +3.25% from its minimum, near the end of October till the first part of December, the government bond markets started again to deteriorate and the corporate spreads to widen, following the rate’s statements made by the ECB. In Erasmus Bond Fund the cash has been increased near 5% and the duration was reduced to 2.75 years, closing the 6% long position on 10 years Bund future and increasing the short on the 10 years Japanese Government Bond from 3% to 6%. However, at the end of December it was decided to increase the US Treasuries by 3%, opening a long
position in 10 years future: a fly-to-quality step to prevent any sudden negative surprises. The portfolio holds 33% in the Banking sector, 5.5% in the Insurance one; 7% in Auto Manufacturers issues, 6.50% in Energy (Oil & Gas), 5% in Chemicals, 4.5% in Airlines & Airport, 1.5% in Engineering & Construction. It has been kept the position outside Euro in USD at 13%, another flyto- quality point, while other currencies are completely hedged. The average portfolio’s coupon is now at 4.15% and is quite stable, the average yield to maturity of the portfolio is over 5.25%. Some positive inflows in the AuM during the month.