Flexible Bonds

Vontobel Fund - TwentyFour Strategic Income Fund

ISIN
LU1322871390
Valor
30445160
Sedol
BYXDH57

Investment objective

This bond fund aims to achieve an attractive level of income and capital growth over a full economic cycle, while respecting risk diversification.


Key features

The fund invests worldwide in a variety of government bonds, supranational bonds, investment-grade and high-yield corporate bonds, emerging market bonds, contingent convertible bonds, and asset-backed securities, denominated in various currencies. At the point of purchase, exchange rate risks against the fund currency are fully hedged. The fund can use derivative financial instruments for hedging purposes.


Approach

The experienced investment team takes a high-conviction approach to finding the best relative-value opportunities available in the investment universe, based on rigorous macro-economic and technical analyses combined with detailed credit analysis. Striving to benefit throughout the credit cycle from both rising and declining rate environments, the team flexibly allocates interest-rate and credit risks in line with their continuous assessment of market conditions and future developments. They also use interest-rate and credit derivatives to either optimize or reduce exposures.

109.08
NAV
-17.75%
Performance YTD
4 stars
As at 29 Sep 2022 As of 31 Aug 2022

The Vontobel Fund - TwentyFour Strategic Income Fund (SIF) is an unconstrained fund that seeks value from across the global bond markets.

SIF is TwentyFour’s flagship ‘go anywhere’ bond fund, designed as a core fixed income allocation to be held throughout the economic cycle. The managers’ approach is dynamic and high conviction, with the portfolio able to adjust quickly to target new opportunities and mitigate risks as market conditions evolve.

Why invest?

  • The primary goal is an attractive level of income at all times, with a secondary goal of capital growth where conditions permit
  • An unconstrained, global and flexible fund not tied to any benchmark
  • An investment universe spanning government bonds, investment grade, high yield and emerging markets, as well as more specialist sectors such as subordinated financials and asset-backed securities
  • High conviction approach seeks relative value by geography, sector, bond issuer and type of bond, looking to capture alpha from the bottom-up as well as top-down
  • Long-only and unlevered, but with a hedging toolkit available for managing currency, interest rate and credit risk

“This long-only, unlevered strategic bond fund offers a complete solution designed to work through every phase of the market cycle while preserving capital and generating income

Mark Holman, Portfolio Management

Mark Holman

Global fixed income in one portfolio

24-Infographic-coloured-UK-NEW

Investment team

 

Insights

All data is as at 31 Aug 2022 unless otherwise indicated.

Fund performance

Cumulative performance

1M YTD 3 yrs p.a. 5 yrs p.a. Since Inception
I GBP -1.1% -11.9% -0.5% 1.0% 16.8%

Performance for 12 month periods

09.11 - 08.12 09.12 - 08.13 09.13 - 08.14 09.14 - 08.15 09.15 - 08.16 09.16 - 08.17 09.17 - 08.18 09.18 - 08.19 09.19 - 08.20 09.20 - 08.21 09.21 - 08.22
I GBP NA NA NA NA NA 7.7% 0.9% 5.5% 4.6% 7.9% -12.7%

Performance for calendar years

Portfolio characteristics

Portfolio
Volatility 8.4%
Sharpe Ratio negative
Interest rate duration 4.0
Credit duration 3.0
Average Rating BBB-
Number of positions 376.0
[1 year]

All data is as at 29 Sep 2022 unless otherwise indicated.

Fund data
Portfolio Manager TwentyFour Asset Management LLP
Fund Domicile Luxembourg
Fund Currency GBP
Share Class Currency GBP
End of fiscal year 31 August
Share Class Launch date 30 Nov 2015
Distribution type Accum
SFDR Classification Article 8
Fund Registrations AT, CH, DE, ES, FI, FR, GB, IE, IT, LI, LU, NL, NO, PT, SE, SG
Share Class Registrations CH, FI, GB, IE, LU, NO, SE, SG
Nav Information
Highest since launch 134.27
Lowest since launch 94.19
Fund size in mln. GBP 4,229.21
Share class size in mln. GBP 120.68
Fees And Expenses
Management fee 0.60%
TER* 0.70% (28 Feb 2022)
Identifiers
ISIN LU1322871390
Valor 30445160
Bloomberg VOTFGIG LX
SEDOL BYXDH57
WKN A2DXBS
Parties
Depository RBC Investor Services Bank S.A.
Management Company Vontobel Asset Management S.A.
Swiss Paying Agent Bank Vontobel AG
Swiss Representative Vontobel Fonds Services AG

Available Share Classes

Share class Currency ISIN Distrib. Type Launch date Management fee TER* TER Date
AH (hedged) USD LU1380459609 Dist Retail 23 Mar 2016 1.20% 1.40% 28 Feb 2022
AH (hedged) EUR LU1380459518 Dist Retail 23 Mar 2016 1.20% 1.40% 28 Feb 2022
AHN (hedged) CHF LU1683482407 Dist Retail 4 Oct 2017 0.60% 0.80% 28 Feb 2022
AHN (hedged) EUR LU1734078311 Dist Retail 11 Dec 2017 0.60% 0.80% 28 Feb 2022
AQ GBP LU1695534591 Dist Retail 10 Oct 2017 1.20% 1.34% 28 Feb 2022
AQG GBP LU1322872018 Dist Institutional 30 Nov 2015 0.45% 0.55% 28 Feb 2022
AQH (hedged) Gross EUR LU1695534757 Dist Retail 10 Oct 2017 1.20% 1.40% 28 Feb 2022
AQH (hedged) Gross USD LU1695534674 Dist Retail 10 Oct 2017 1.20% 1.40% 28 Feb 2022
AQHG (hedged) EUR LU1816229899 Dist Institutional 18 May 2018 0.45% 0.61% 28 Feb 2022
AQHG (hedged) USD LU1816230046 Dist Institutional 18 May 2018 0.45% 0.61% 28 Feb 2022
AQHI (hedged) USD LU1331792082 Dist Institutional 18 Dec 2015 0.60% 0.76% 28 Feb 2022
AQHN (hedged) EUR LU1325135033 Dist Retail 30 Nov 2015 0.60% 0.80% 28 Feb 2022
AQHNG (hedged) EUR LU1325134226 Dist Retail 30 Nov 2015 0.45% 0.65% 28 Feb 2022
AQHNG (hedged) USD LU1451580523 Dist Retail 22 Jul 2016 0.45% 0.65% 28 Feb 2022
AQN GBP LU1322871630 Dist Retail 30 Nov 2015 0.60% 0.74% 28 Feb 2022
AQNG GBP LU1695534328 Dist Retail 10 Oct 2017 0.45% 0.59% 28 Feb 2022
G GBP LU1322871713 Accum Institutional 30 Nov 2015 0.45% 0.55% 28 Feb 2022
H (hedged) USD LU1695535135 Accum Retail 10 Oct 2017 1.20% 1.40% 28 Feb 2022
H (hedged) EUR LU1551754515 Accum Retail 31 Jan 2017 1.20% 1.40% 28 Feb 2022
HG (hedged) USD LU1717117896 Accum Institutional 10 Nov 2017 0.45% 0.61% 28 Feb 2022
HG (hedged) EUR LU1717117623 Accum Institutional 10 Nov 2017 0.45% 0.61% 28 Feb 2022
HI (hedged) EUR LU1325141510 Accum Institutional 30 Nov 2015 0.60% 0.76% 28 Feb 2022
HI (hedged) USD LU1325144027 Accum Institutional 30 Nov 2015 0.60% 0.76% 28 Feb 2022
HN (hedged) USD LU1767066431 Accum Retail 9 Feb 2018 0.60% 0.80% 28 Feb 2022
HNG (hedged) EUR LU1325133921 Accum Retail 30 Nov 2015 0.45% 0.65% 28 Feb 2022
HNG (hedged) USD LU1695535051 Accum Retail 10 Oct 2017 0.45% 0.65% 28 Feb 2022
I GBP LU1322871390 Accum Institutional 30 Nov 2015 0.60% 0.70% 28 Feb 2022
N GBP LU1322871556 Accum Retail 30 Nov 2015 0.60% 0.74% 28 Feb 2022
NG GBP LU1322871986 Accum Retail 30 Nov 2015 0.45% 0.59% 28 Feb 2022

* TER includes performance fee where applicable

All data is as at 31 Aug 2022 unless otherwise indicated.

Regional Exposure

View all documents View latest documents

Document Date EN
Factsheets & Commentaries
Factsheet Aug 2022
Monthly Commentary Aug 2022
Brochures
Product Flyer Feb 2022
KIIDs
KIID Apr 2022
Legal Documents
AGM EGM invitation Jan 2022
AGM EGM invitation May 2021
AGM EGM invitation Jan 2021
AGM EGM invitation Jan 2020
Articles of Association Apr 2016
Notification to Investors Sep 2021
Notification to Investors Jul 2021
Notification to Investors May 2021
Notification to Investors Mar 2021
Notification to Investors Feb 2021
Notification to Investors Nov 2019
Sales Prospectus Jan 2022
View more Legal Documents View less Legal Documents
Financial Reports
Annual Distribution Nov 2021
Annual Report Aug 2021
Distribution Dates Jan 2022
Quarterly Distribution Sep 2022
Semi-Annual Report Feb 2022
UK Tax Reporting Aug 2021
Dealing Information
Holiday Calendar 2022 Sep 2022
Order Subscription Form Jan 2020
Policies
Sanctioned Countries Sep 2016
Shareclass Naming Convention Jan 2022

Summary

The Sub-Fund promotes environmental and social characteristics by following integration and exclusions approaches by investing in debt securities of companies with favourable Environmental, and Social scores.

No sustainable investment objective

This financial product promotes environmental or social characteristics, but does not have as its objective a sustainable investment.

Environmental or social characteristics of the financial product

The Sub-Fund invests in debt securities of companies with favourable Environmental and Social combined scores. To define the investment universe, the team applies a sustainability screening based on a proprietary scoring model to include only those issuers whose sustainability scores exceed the defined minimum.

Investment strategy

Our investment process consists of detailed, systematic qualitative and quantitative analysis of a potential investee’s sustainability risks and sustainability factors (collectively Sustainability Indicators). Integrating Sustainability Indicators is a central pillar in the investment process with the aim of improving the long-term risk-return characteristics of the sub-fund’s portfolio and supporting elevated social or environmental practices by the investee companies.

Proportion of investments

We have applied our sustainability selection criteria to the majority of the securities in the sub-fund.

Monitoring of environmental or social characteristics

Compliance with the environmental and social characteristics is monitored on an on-going basis.

Methodologies

Companies must have a combined E and S score above a minimum threshold  based on our proprietary scoring model and we positively screen companies through a comprehensive analysis process, which may include the use of specialized rating agencies and systems.

In addition to the scoring of securities, the portfolio management system enables us to understand positive or negative changes and to assess individual bonds on a relative value basis, given E and S factors – in this sense the ESG assessment does not solely dictate buy or sell recommendations, but it is part of an overall assessment of the validity of an investment decision. Further information on the model and the ESG approach can be found at https://www.twentyfouram.com/responsible-investment.

Data sources and processing

The sustainability ratings are based upon information raw data from specialized third-party ESG data providers compiled and evaluated in the proprietary in-house sustainability model database. Additional fundamental information from companies, media, NGOs as well as international organizations is evaluated in the database. The major third-party ESG data provider is ASSET4.

Limitations to methodologies and data

The data obtained from third-party data providers or issuers may be incomplete, inaccurate, or unavailable and the assumptions or models on which internal analysis rests may have flaws that render the internal assessment incomplete or inaccurate. As a result, there exists a risk of incorrectly assessing a security or issuer, resulting in the incorrect inclusion or exclusion of a security. There is also a risk we may not apply the relevant criteria of the ESG research correctly or that the sub-fund could have indirect exposure to issuers who do not meet the relevant criteria.

Due diligence

Each asset in the portfolio has its sustainability performance reevaluated using the sustainability framework once a year by our investment team.

Engagement policies

The sub-fund applies the Vontobel Asset Management voting and engagement policies. For the equity funds, voting rights are executed under the responsibility of the portfolio manager, by using proxy service providers for research, voting recommendations and voting administration. Bond investors do not have voting rights. Engagement is part of the ESG research process. It includes communications between the ESG research team and the management teams of investee companies, typically in case of specific issues ore controversies that may cover ESG concerns.

Designated reference benchmark

This sub-fund does not have a designated reference ESG benchmark, but applies a conventional benchmark whose construction does not take into account ESG criteria.