SHYucits
Swan Short-Term High Yield is the UCITS version of our Fixed Income Intermediate risk profile. Depending on market conditions, the strategy combines an highly diversified buy and hold portfolio of liquid short-term fixed income securities with an opportunistic allocation to longer dated securities in Global HY markets. Target Return is 3 months LIBOR + 250 bps.
The target credit exposure on the Active portfolio is determined on a weekly basis by a multi-factorial analytical frame work (CAS - Credit Allocation Scoring). Active strategies are deployed mainly via Bonds and ETF.
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.
VEHICLE: | UCITS IV |
CURRENCY: | EUR, USD and CHF |
INCEPTION DATE: | June 2010 |
MANAGEMENT FEE: | class A / B: 1.20% class C: 0.90% |
PERFORMANCE FEE: | 15% |
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:
- Attractive excess returns vs LIBOR (> 3% p.a.) net to the clients.
- No negative returns in any year.
- Extremely low levels of standard deviation (average since inception: 1.45%).
- Strong asset liquidability and cash generative profile.
MINIMUM TARGET RETURN PER YEAR: | LIBOR +2.50% |
AVERAGE STANDARD DEVIATION since inception (daily 1 year): | 1.35% |
ANNUALIZED EXCESS RETURN (last 5 years): | 2.59% |
AVERAGE SHARPE RATIO since inception (daily 1 year): | 2.37 |