SBEsif

Swan Bond Enhanced SIF is the alternative version of our Fixed Income Intermediate risk profile. The strategy is focused on an highly diversified buy and hold portfolio of liquid short-term fixed income securities, in a levered format. Leverage is normally included between 50% and 150% of the NAV. Target Return is 3 months LIBOR + 350 bps. Launched on June 2013.

The fund levers our Yield Type strategy with a total long exposure expected in a 2x - 3x range of the NAV and its portfolio is mainly composed by sub-investment grade names; active strategies are not applied.

Leverage is usually applied in a range between 50% and maximum 150% of the NAV in order to get to a Total Long Exposure of maximum 3X the NAV. The position in the range depends, from time to time, on market conditions, attractiveness of the risk premiums, relevant funding terms. The number of issuers in the levered format is around 120, maintaining a high level of diversification and granularity of the underlying portfolio and the same guidelines of the unlevered strategy with regard to rating distribution and concentration. Physical bonds are normally the first choice, CDS are a useful complement to broaden the spectrum of issuers.

The target is to lever the excess spread available in the credit markets, taking advantage of attractive funding costs, while accepting higher, but still extremely reduced, mark to market risks relatively to unlevered strategy.

ISIN:LU0849750368

VEHICLE:

LUX SIF

CURRENCY:

EUR, USD and CHF

INCEPTION DATE:

June 2013

MANAGEMENT FEE:

1.50%

PERFORMANCE FEE:

20%

Despite the significant volatility of reference markets, 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:

  1. Attractive excess returns vs LIBOR (around 3% p.a.) net to the clients.
  2. No negative returns in any year.
  3. Extremely low levels of standard deviation (average since inception: 1.18%).
  4. Strong asset liquidability and cash generative profile.

MINIMUM TARGET RETURN PER YEAR:

LIBOR +3 / 3.50%

AVERAGE STANDARD DEVIATION since inception (daily 1 year):

1.31%

ANNUALIZED EXCESS RETURN (last 5 years):

3.18%

AVERAGE SHARPE RATIO since inception (daily 1 year):

2.42

SPECIFIC LEGAL NOTES FOR INVESTMENT FUNDS AND SICAV

DISCLAIMER

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This site and the documents displayed on it contain information about funds that are authorized for sale to qualified investors in Switzerland in accordance with art. 10 para. 3, 3bis and 3ter of the Collective Investment Scheme Act (CISA) with residence in Switzerland. It is intended solely for the use of the person who has accessed this information and may not be reproduced or distributed to any other person.

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Risk disclosure

Investing in the Fund and its Sub-Funds involves risks, including in particular those associated to market fluctuations and the risks inherent in any investment in financial assets. Investments may also be affected by changes to the rules and regulations governing exchange controls or taxation, including withholding tax, or by changes to economic and monetary policies. No guarantee can be given that the Fund’s and Sub-Funds’ objectives will be achieved and that investors will recover the amount of their initial investment.  Past performance is not an indicator for future results or performance. The Sub-Funds are exposed to various risks, depending on their respective investment policies. Investors should read the Prospectus carefully and consult their own professional adviser(s) as to the implications of subscribing for or otherwise dealing in the shares.

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