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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 37.89 M
NAV Frequency: Daily
Registered in: LUX, CH, IT
Management Fee: 1.2%
NAV as at 30.04.2022: EUR 109.96

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 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.