ESG Quarterly Update - July 2022
This bond fund aims to achieve a positive return over three years (volatility target: maximum 3% per annum) and seeks to promote environmental or social practices, while respecting risk diversification.
The fund invests worldwide mainly in shorter-term bonds in different currencies of various issuers of investment grade quality that seek to promote environmental or social practices. The average maturity of the portfolio is 3.5 years. The fund can use derivative financial instruments for hedging purposes.
The experienced and diverse investment team takes high-conviction decisions based on rigorous macro-economic, technical and issuer analyses. 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 or intensively using fossil resources, 2) to include only those issuers whose sustainability scores exceed the defined minimum. In line with their continuous assessment of market developments, the team flexibly allocates interest-rate and credit risks in the portfolio, striving to benefit throughout the economic cycle.
A short term bond fund that aims to provide investors with a sustainable fixed income solution without compromising overall returns.
Based on TwentyFour’s well-known Vontobel Fund – TwentyFour Absolute Return Credit Fund (ARC), SSTBI applies both positive and negative ESG screening to the investment universe, a system designed to reward companies for sound ESG practices. Like ARC, SSTBI is an actively managed short term bond fund that aims to deliver steady returns in any market environment while keeping volatility to a minimum. With strict risk parameters and a focus on short dated investment grade bonds, the managers aim to sustainably capture nearly all the returns of higher risk strategies but with a fraction of the drawdowns expected in tougher market conditions.
“By ruling out ‘sin’ sectors but actively rewarding bond issuers in the top half of our ESG scoring distribution, we believe we can target the very best risk-adjusted returns in fixed income without compromising on performance.”
Negative and Positive Screens would only be applied to Vontobel Fund – TwentyFour Sustainable Short Term Bond Income. Source: TwentyFour
All data is as at 11 Aug 2022 unless otherwise indicated.
|Portfolio Manager||TwentyFour Asset Management LLP|
|Share Class Currency||USD|
|End of fiscal year||31 August|
|Share Class Launch date||4 Oct 2021|
|SFDR Classification||Article 8|
|Fund Registrations||AT, CH, DE, ES, FI, FR, GB, IE, IT, LI, LU, NL, PT, SE, SG|
|Share Class Registrations||CH, GB, LU, SG|
|Highest since launch||100.00|
|Lowest since launch||94.59|
|Fund size in mln.||GBP 553.71|
|Share class size in mln.||USD 47.36|
|TER*||0.46% (28 Feb 2022)|
|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|
|AHI (hedged)||EUR||LU2081486727||Dist||Institutional||22 Jan 2020||0.40%||0.57%||28 Feb 2022|
|AHI (hedged)||USD||LU2210409616||Dist||Institutional||27 Aug 2020||0.40%||0.57%||28 Feb 2022|
|AHI (hedged)||CHF||LU2210410036||Dist||Institutional||27 Aug 2020||0.40%||0.57%||28 Feb 2022|
|AN||GBP||LU2386632371||Dist||Retail||4 Oct 2021||0.40%||0.55%||28 Feb 2022|
|AQG||GBP||LU2081485596||Dist||Institutional||22 Jan 2020||0.25%||0.36%||28 Feb 2022|
|AQHNG (hedged)||USD||LU2403268092||Dist||Retail||5 Nov 2021||0.25%||0.46%||28 Feb 2022|
|AQHNG (hedged)||EUR||LU2081486487||Dist||Retail||5 Nov 2021||0.25%||0.46%||28 Feb 2022|
|AQI||GBP||LU2081485919||Dist||Institutional||22 Jan 2020||0.40%||0.51%||28 Feb 2022|
|AQN||GBP||LU2081486057||Dist||Retail||29 Nov 2021||0.40%||0.55%||28 Feb 2022|
|AQNG||GBP||LU2081485679||Dist||Retail||22 Jan 2020||0.25%||0.40%||28 Feb 2022|
|G||GBP||LU2081485240||Accum||Institutional||22 Jan 2020||0.25%||0.36%||28 Feb 2022|
|HI (hedged)||EUR||LU2081486560||Accum||Institutional||22 Jan 2020||0.40%||0.57%||28 Feb 2022|
|HI (hedged)||CHF||LU2210409962||Accum||Institutional||27 Aug 2020||0.40%||0.57%||28 Feb 2022|
|HI (hedged)||USD||LU2081487709||Accum||Institutional||27 Aug 2020||0.40%||0.57%||28 Feb 2022|
|HNG (hedged)||EUR||LU2081486214||Accum||Retail||4 Oct 2021||0.25%||0.46%||28 Feb 2022|
|HNG (hedged)||USD||LU2386631993||Accum||Retail||4 Oct 2021||0.25%||0.46%||28 Feb 2022|
|N||GBP||LU2081485836||Accum||Retail||29 Nov 2021||0.40%||0.55%||28 Feb 2022|
|NG||GBP||LU2081485323||Accum||Retail||22 Jan 2020||0.25%||0.40%||28 Feb 2022|
* TER includes performance fee where applicable
All data is as at 29 Jul 2022 unless otherwise indicated.
View all documents View latest documents
|Factsheets & Commentaries|
|Monthly Commentary||Jul 2022|
|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|
|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|
|Holiday Calendar 2022||Jun 2022|
|Order Subscription Form||Jan 2020|
|Sanctioned Countries||Sep 2016|
|Shareclass Naming Convention||Jan 2022|
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.
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.
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 to 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 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.
Each asset in the portfolio has its sustainability performance reevaluated using the sustainability framework once a year by our investment team.
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.