Asset-Backed Securities
This bond fund aims to provide an attractive level of income relative to prevailing interest rates, while maintaining a strong focus on capital preservation and respecting risk diversification.
The fund invests with a focus on Europe in fixed-income securities, particularly asset-backed securities, in various currencies of diverse issuers of good quality (at least low investment grade). The fund can use derivative financial instruments for hedging purposes.
The experienced and diverse investment team focuses initially on capital preservation, avoiding defaults and mitigating volatility, as well as accessing an attractive revenue stream on a risk-adjusted basis. The team drives this by a thorough analysis of fundamental credit risk as well as by the liquidity profile of each position and the relative value present in the portfolio compared to the market. The team extensively mitigates interest-rate and currency risks by investing solely in floating-rate bonds and hedging currency exposures.
A fund that invests across the full range of investment grade European ABS, using the natural advantages of the asset class and a vastly experienced team to target stable, attractive returns.
The European ABS market is split broadly into four areas, though certain sub-sets of these sectors are considered important distinct products in their own right, such as Auto ABS and Credit Card ABS.
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All data is as at 31 Oct 2022 unless otherwise indicated.
| 1M | YTD | 3 yrs p.a. | 5 yrs p.a. | Since Inception | |
|---|---|---|---|---|---|
| I EUR | -0.3% | -5.8% | -1.3% | -0.6% | -1.7% |
| 11.11 - 10.12 | 11.12 - 10.13 | 11.13 - 10.14 | 11.14 - 10.15 | 11.15 - 10.16 | 11.16 - 10.17 | 11.17 - 10.18 | 11.18 - 10.19 | 11.19 - 10.20 | 11.20 - 10.21 | 11.21 - 10.22 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| I EUR | NA | NA | NA | NA | NA | NA | 0.6% | 0.5% | -0.8% | 2.6% | -5.7% |
| Portfolio | |||||
|---|---|---|---|---|---|
| Volatility | 5.0% | ||||
| Sharpe Ratio | |||||
| Interest rate duration | 0.1 | ||||
| Credit duration | 2.3 | ||||
| Average Rating | AA- | ||||
| Number of positions | 76.0 | ||||
| [3 years annualized] | |||||
All data is as at 25 Nov 2022 unless otherwise indicated.
| Portfolio Manager | TwentyFour Asset Management LLP |
|---|---|
| Fund Domicile | Luxembourg |
| Fund Currency | EUR |
| Share Class Currency | EUR |
| End of fiscal year | 31 August |
| Share Class Launch date | 27 Jun 2017 |
| Distribution type | Accum |
| Swing pricing | Yes |
| SFDR Classification | Article 8 |
| Fund Registrations | AT, CH, DE, ES, FI, GB, IT, LI, LU, NL, NO, SE, SG |
| Share Class Registrations | CH, DE, ES, FI, GB, IT, LI, LU, NL, NO, SE, SG |
| Highest since launch | 104.45 |
|---|---|
| Lowest since launch | 94.41 |
| Fund size in mln. | EUR 130.05 |
| Share class size in mln. | EUR 81.64 |
| Management fee | 0.50% |
|---|---|
| TER* | 0.62% (28 Feb 2022) |
| ISIN | LU1602255561 |
|---|---|
| Valor | 36484858 |
| Bloomberg | VONTFIE LX |
| SEDOL | BYVXB35 |
| WKN | A2DTWS |
| 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 |
| Share class | Currency | ISIN | Distrib. | Type | Launch date | Management fee | TER* | TER Date |
|---|---|---|---|---|---|---|---|---|
| A | EUR | LU1882612564 | Dist | Retail | 5 Nov 2018 | 1.00% | 1.16% | 28 Feb 2022 |
| AHI (hedged) | GBP | LU2388185246 | Dist | Institutional | 6 Oct 2021 | 0.50% | 0.68% | 28 Feb 2022 |
| AQHG (hedged) | GBP | LU2388185089 | Dist | Institutional | 6 Oct 2021 | 0.35% | 0.53% | 28 Feb 2022 |
| AQHNG (hedged) | GBP | LU2388184868 | Dist | Retail | 6 Oct 2021 | 0.35% | 0.57% | 28 Feb 2022 |
| HG (hedged) | GBP | LU2388185162 | Accum | Institutional | 6 Oct 2021 | 0.35% | 0.53% | 28 Feb 2022 |
| HI (hedged) | USD | LU1602256700 | Accum | Institutional | 27 Jun 2017 | 0.50% | 0.68% | 28 Feb 2022 |
| HI (hedged) | GBP | LU2388185329 | Accum | Institutional | 6 Oct 2021 | 0.50% | 0.68% | 28 Feb 2022 |
| HI (hedged) | CHF | LU1602256296 | Accum | Institutional | 27 Jun 2017 | 0.50% | 0.68% | 28 Feb 2022 |
| HN (hedged) | GBP | LU1882613372 | Accum | Retail | 5 Nov 2018 | 0.50% | 0.72% | 28 Feb 2022 |
| HN (hedged) | CHF | LU1882613299 | Accum | Retail | 5 Nov 2018 | 0.50% | 0.72% | 28 Feb 2022 |
| HNG (hedged) | GBP | LU2388184942 | Accum | Retail | 6 Oct 2021 | 0.35% | 0.57% | 28 Feb 2022 |
| I | EUR | LU1602255561 | Accum | Institutional | 27 Jun 2017 | 0.50% | 0.62% | 28 Feb 2022 |
| N | EUR | LU1882613026 | Accum | Retail | 5 Nov 2018 | 0.50% | 0.66% | 28 Feb 2022 |
* TER includes performance fee where applicable
All data is as at 31 Oct 2022 unless otherwise indicated.
View all documents View latest documents
| Document | Date | EN |
|---|---|---|
| Factsheets & Commentaries | ||
| Factsheet | Oct 2022 | |
| Monthly Commentary | Oct 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 | Nov 2022 | |
| Notification to Investors | Jan 2022 | |
| 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 | |
| Holiday Calendar 2023 | Jan 2023 | |
| Order Subscription Form | Jan 2020 | |
| Insights | ||
| Solvency II and Asset Backed Securities | Nov 2017 | |
| Policies | ||
| Sanctioned Countries | Oct 2022 | |
| 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 excellent Environmental, Social and Governance ratings.
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 excellent Environmental, Social and Governance ratings. To define the investment universe, the team applies a two-step sustainability screening based on a proprietary scoring model: 1) to exclude issuers active in controversial businesses, like tobacco, alcohol, weapons, or gambling, or intensively using fossil resources, 2) 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 100% 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
We seek to avoid investments in companies with material production in tobacco, alcohol, gambling, adult entertainment, controversial weapons and carbon intensive industries, and companies involved in animal testing for cosmetic purposes. This list is not exhaustive and may change from time to time to reflect new developments and research in the field of sustainable investment, for example where technology or social trends evolve. In addition, issues/securities must have an ESG rating 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 records positive or negative changes and enables us to understand and assess individual bonds on a relative value basis, given ESG 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 issuers and evaluated in-house as well as 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 or 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.