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 – April Erasmus Bond

Fund manager insights

The corporate spreads continued to widen in Europe, to 90 for the 5 years Investment Grade and to 430 for the High Yield, respectively +75% the first since the beginning of this year and +70% the second. In the portfolio we continued to implement a bottom-up strategy of bond-picking as yields go up, and a top-down one where we favor the banking sector – increased to 34% from 30% – and insurances issues (over 10%) because of the rate increase and their greater evaluability at this time compared to industrial companies. At the sectoral level we keep furthermore 14% in Cyclicals, 10% in Industrial (6% in Auto Manufacturers and 4% in Chemicals) and 4% in Energy (Oil & Gas). The 6% future position short in US Treasuries remains in
place to hedge the long positions in the Notes 2040 and 2045, for a total of 4%. In the fund’s open currency diversification, we completely hedge the NOK and AUD expositions after the big bounce due to the rise in Oil and Commodities prices; we still hold GBP for a weight of 4.50% and USD for 6%. The average duration is now 3.75 years, while the average yield of the portfolio has risen well over 4%, in line with the average coupon at 4.05%. The Asset under Management is quite stable, despite the performance was negative for the fourth consecutive month.