Investment Grade

Vontobel Fund - TwentyFour Absolute Return Credit Fund

ISIN
LU1599320444
Valor
36446926

Investment objective

This bond fund aims to achieve a positive absolute return over a period of three years by keeping a modest level of volatility, while respecting risk diversification.


Key features

The fund can invest worldwide, with a focus on Europe, in corporate bonds and similar fixed-interest and floating-rate securities in various currencies of diverse issuers of good quality (investment grade). The fund can use derivative financial instruments for hedging purposes.


Approach

The experienced and diverse investment team takes high-conviction decisions based on rigoros macro-economic, technical and issuer analyses. In line with their continuous assessment of market conditions and future developments, the team allocates interest-rate and cedit risks with the aim to benefit from any market environment. They select those securities and instruments within the investment universe in which they see the most rewarding yield and/or hedging values. The team actively adapts the portfolio to invest in attractive opportunities whenever they occur while keeping risks under control.

96.30
NAV
-6.09%
Performance YTD
As at 30 Jun 2022

A short term bond fund that targets the very best risk-adjusted returns within fixed income while keeping volatility to a minimum.

The Vontobel Fund - TwentyFour Absolute Return Credit Fund (ARC) is an actively managed short term bond fund that aims to deliver steady returns in any market environment. With strict risk parameters and a focus on short dated investment grade bonds, ARC aims to capture nearly all the returns of higher risk strategies but with a fraction of the drawdowns expected in tougher market conditions.

Why invest?

  • We aim to achieve a positive absolute return in any market environment over three years, by keeping a modest level of volatility
  • A minimum of two-thirds of the fund is invested in 0-5yr investment grade bonds, which we consider the best source of risk-adjusted returns within fixed income
  • Smaller high conviction allocations to BB rated high yield, asset-backed securities (ABS) and 6-7yr investment grade bonds
  • A strong emphasis on stock selection seeking to generate alpha and further manage risks. All bond positions must pass a rigorous screening process to show they have good return potential with low expected volatility
  • We use zero leverage or shorting, and when allocating our mix of assets we choose to avoid emerging markets and high yield bonds rated below BB (the highest rating band in HY)

“Short term bond funds should be simple, safe, and come with no surprises. With strict limits on risk, this fund aims to deliver some of the best risk-adjusted returns in all of fixed income.”

Chris Bowie, Partner, Portfolio Management

A core of short dated investment grade bonds

English-24-chart_abs

Based on optimal model index analysis. Simulated past performance is not a reliable indicator of future performance and does not represent actual trading. It is not possible to invest directly into an index.

Investment team

Insights

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

Fund performance

Cumulative performance

1M YTD 3 yrs p.a. 5 yrs p.a. Since Inception
HI (hedged) CHF -0.4% -3.6% -0.6% -0.4% -1.1%

Performance for 12 month periods

06.11 - 05.12 06.12 - 05.13 06.13 - 05.14 06.14 - 05.15 06.15 - 05.16 06.16 - 05.17 06.17 - 05.18 06.18 - 05.19 06.19 - 05.20 06.20 - 05.21 06.21 - 05.22
HI (hedged) CHF NA NA NA NA NA NA -0.1% 0.1% -0.2% 3.0% -4.4%

Performance for calendar years

Portfolio characteristics

Portfolio
Volatility 1.3%
Sharpe Ratio 0.2
Interest rate duration 1.7
Credit duration 1.7
Expected annual yield 2.1%
Average Rating BBB+
Number of positions 105.0
[Daily since inception]

All data is as at 30 Jun 2022 unless otherwise indicated.

Fund data
Portfolio Manager TwentyFour Asset Management LLP
Fund Domicile Luxembourg
Fund Currency GBP
Share Class Currency CHF
End of fiscal year 31 August
Share Class Launch date 25 Apr 2017
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 AT, CH, DE, GB, LU, SG
Nav Information
Highest since launch 103.90
Lowest since launch 97.99
Fund size in mln. GBP 2,759.43
Share class size in mln. CHF 34.87
Fees And Expenses
Management fee 0.40%
TER* 0.56% (31 Aug 2021)
Identifiers
ISIN LU1599320444
Valor 36446926
Bloomberg VOTARHI LX
WKN A2DQ7V
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
AHN (hedged) CHF LU1734078154 Dist Retail 11 Dec 2017 0.40% 0.60% 31 Aug 2021
AHN (hedged) EUR LU1683487620 Dist Retail 12 Oct 2017 0.40% 0.60% 31 Aug 2021
AI GBP LU1267852249 Dist Institutional 28 Aug 2015 0.40% 0.50% 31 Aug 2021
AQG GBP LU1530788402 Dist Institutional 5 Dec 2016 0.25% 0.35% 31 Aug 2021
AQHG (hedged) USD LU1767065979 Dist Institutional 16 Feb 2018 0.25% 0.41% 31 Aug 2021
AQHG (hedged) EUR LU1530788238 Dist Institutional 5 Dec 2016 0.25% 0.41% 31 Aug 2021
AQHN (hedged) EUR LU1331789450 Dist Retail 18 Dec 2015 0.40% 0.60% 31 Aug 2021
AQHNG (hedged) USD LU1410502493 Dist Retail 18 May 2016 0.25% 0.45% 31 Aug 2021
AQN GBP LU1331789377 Dist Retail 18 Dec 2015 0.40% 0.54% 31 Aug 2021
AQNG GBP LU1368730674 Dist Retail 26 Feb 2016 0.25% 0.39% 31 Aug 2021
G GBP LU1273680238 Accum Institutional 28 Aug 2015 0.25% 0.35% 31 Aug 2021
HG (hedged) EUR LU1925065655 Accum Institutional 8 Jan 2019 0.25% 0.41% 31 Aug 2021
HI (hedged) CHF LU1599320444 Accum Institutional 25 Apr 2017 0.40% 0.56% 31 Aug 2021
HN (hedged) CHF LU2270707495 Accum Retail 17 Dec 2020 0.40% 0.60% 31 Aug 2021
HN (hedged) EUR LU1734078238 Accum Retail 11 Dec 2017 0.40% 0.60% 31 Aug 2021
HN (hedged) USD LU1767066357 Accum Retail 9 Feb 2018 0.40% 0.60% 31 Aug 2021
I GBP LU1267852082 Accum Institutional 28 Aug 2015 0.40% 0.50% 31 Aug 2021
N GBP LU1267852595 Accum Retail 28 Aug 2015 0.40% 0.54% 31 Aug 2021

* TER includes performance fee where applicable

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

Rating Structure

View all documents View latest documents

Document Date EN
Factsheets & Commentaries
Factsheet May 2022
Monthly Commentary May 2022
Brochures
Product Flyer Jan 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 Jun 2022
Semi-Annual Report Feb 2022
UK Tax Reporting Aug 2021
Dealing Information
Holiday Calendar 2022 Jun 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.