Swan Ultra Short-Term Bond is the UCITS version of our Fixed Income Conservative risk profile, it has been managed with the Unified Approach since inception in April 2009.
The fund, previously Swan Bond Opportunity, has been renamed effectively from 18th January 2019 to better define its strategy. Fund's investment philosophy, strategy and the way it is managed remain the same since inception.
It combines a buy and hold global portfolio of short dated debt instruments (6-18 months - Yield Type Portfolio) with a number of IR and FX strategies in developed countries (Active Portfolio). Active strategies are deployed mainly via IR futures, IR options, FX options e FX forwards.
The Yield Type Strategy consists in investing in a portfolio of short term securities (6-18 months to maturity), mainly investment grade, with the target to capture the excess spread available in the credit markets, while minimizing mark to market risks; securities are normally held to maturity.
Default risks at the issuer/security level are limited (qualitatively) by initial extensive screening and following careful monitoring activity, and (quantitatively) by extreme fragmentation. The currency denomination of the securities is not relevant as FX exposure is entirely hedged through forward contracts, in order to capitalize only on the credit spread.
EUR, USD and CHF
class A / B: 1% class C: 0.75%
Devoted to Absolute Return, it honors its Efficiency mandate and the Golden Rule 1:1 (1% Excess Return to the client for every 1% of Downside Risk of the Fund) by delivering:
- Attractive excess returns vs LIBOR (> 1.5% p.a.) net to the clients.
- No negative returns in any year.
- Extremely low levels of standard deviation (average since inception: 0.82%).
- Strong asset liquidability and cash generative profile. CHF and USD class available.
MINIMUM TARGET RETURN PER YEAR:
AVERAGE STANDARD DEVIATION since inception (daily 1 year):
MAX STANDARD DEVIATION since inception (daily 1 year):
AVERAGE SHARPE RATIO since inception (daily 1 year):