TwentyFour Multi-Sector Bond Strategies

Transcription

1 TwentyFour Multi-Sector Bond Strategies September 2017

2 TwentyFour Multi-Sector Bond Strategy Overview Goal Aims to provide an attractive level of income along with an opportunity for capital growth Concept A genuinely unconstrained and unleveraged long only bond fund, managed independent of market indices How Combining the best sources of fixed income risks from around the globe in one portfolio Active management of key risks e.g. interest rate and credit durations Highly focused on relative value and liquidity Value added through stock selection as well as from the top down Risk reduction through a broad armoury of hedging tools Consequence Enables the fund to perform throughout the economic cycle 2

3 Dynamic Bond Fund vs. Multiverse Index Multiverse Index Dynamic Bond Fund Market Cap $52.6 trillion 1,568.7 million Number Issues 24, Duration (years)* Yield (%)** Average Rating AA- BB+ Unmanaged Actively Managed Multiverse is the universe of all publicly traded government and corporate bonds *Duration is interest rate duration. **The yield is the Gross Purchase Yield. The Gross Purchase Yield is shown at portfolio level by calculating the return each bond earns on the price at which it was purchased, if held to maturity. The Gross Purchase Yield does not take into account the fees charged. Past performance is not an indication of future performance. The performance data do not take account of the commissions and costs incurred on issue and redemption. Source: Barclays Point, 31 st August

4 Dynamic Bond Fund Portfolio Positioning Rating Breakdown Sector Breakdown Geographic Breakdown CCC, 0.4% B, 16.6% NR, 6.4% BB, 42.2% AAA/Cash & Equiv, 19.0% BBB, 13.1% AA, 0.3% A, 2.1% Banks ABS Insurance High Yield - EU Government High Yield - US Emerging Markets Cash & Equiv 14.2% 12.5% 11.9% 11.9% 10.0% 8.4% 7.2% 23.6% UK Europe North America Other Cash & Equiv 7.2% 11.5% 18.7% 28.3% 34.3% IG Corps 0.4% 0% 10% 20% 30% 40% Source: TwentyFour 31 st August

5 Dynamic Bond Fund YTD Performance Contribution Sector Contribution Per Sector (%) If it was a standalone sector, how would it have performed? Banks 2.47% 11.25% Asset backed securities 1.64% 10.10% Insurance 1.61% 11.83% Emerging Markets 0.61% 13.30% US High Yield 0.31% 4.2% European High Yield 0.30% 2.53% Investment Grade Corporates 0.12% 5.57% Government 0.12% 1.10% Derivatives 0.05% Hedges -0.08% Total Return 7.15% Past performance is not an indication of future performance. The performance data does not take into account the commissions and costs incurred on issue and redemption. Contribution per sector: Each individual sectors contribution to the overall performance in Dynamic Bond Fund. Source: TwentyFour 31 st August

6 Multi-Sector Bond Strategy Composite Performance and Annual Fund Total Return Since Inception* 29/04/ /04/ /04/ /04/ /04/ /04/ /04/ /04/ % 25.0% 24.20% 22.5% 20.0% 17.5% 15.0% % 10.0% 10.65% % 5.0% 2.5% 2.14% 6.81% 3.55% 5.47% 7.16% % % 2010 (since 29-Apr-10) -1.91% YTD 92.5 Multi-Sector Bond Composite GBP Total Return (lhs) Barclays Global Agg Corp TR GBP Hedged Index Multi-Sector Bond Composite GBP Performance (rhs) The Multi-Sector Bond Strategy returns are presented net of fees. Benchmark shown is Barclays Global Aggregate Corporate Total Return Index. Past performance is not an indication of future performance. Performance data is shown in sterling on a mid-to-mid basis, inclusive of all fund expenses. Performance data does not take into account any commissions and costs charged when shares of the fund are issued and redeemed. The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested. *Multi-Sector Bond strategy is made up of the Dynamic Bond Fund and Strategic Income Fund. The inception date of the Dynamic Bond Fund is Inception date of Strategic Income Fund is Source: TwentyFour 31 st August

7 TwentyFour Asset Management LLP 8th Floor The Monument Building 11 Monument Street London EC3R 8AF T: +44 (0) twentyfouram.com 7

8 Disclaimer This document has been prepared by TwentyFour Asset Management LLP ("TwentyFour, the Company), portfolio manager of the Funds and strategies described herein, for information purposes only. This document is an indicative summary of the terms and conditions of the securities and strategies described herein and may be amended, superseded or replaced by subsequent summaries. The final terms and conditions of the securities will be set out in full in the applicable offering document(s). This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities described herein. TwentyFour is not acting as advisor or fiduciary. Accordingly you must independently determine, with your own advisors, the appropriateness for you of the securities before investing. TwentyFour accepts no liability whatsoever for any consequential losses arising from the use of this document or reliance on the information contained herein. TwentyFour does not guarantee the accuracy or completeness of information which is contained in this document and which is stated to have been obtained from or is based upon trade and statistical services or other third party sources. Any data on past performance, modelling or back-testing contained herein is no indication as to future performance and there can be no assurance that targeted or projected returns will be achieved, that the Company will achieve comparable results or that the Company will be able to implement its investment strategy or achieve its investment objectives. No representation is made as to the reasonableness of the assumptions made within or the accuracy or completeness of any modelling or back-testing. All opinions and estimates are given as of the date hereof and are subject to change. The value of any investment may fluctuate as a result of market changes. The information in this document is not intended to predict actual results and no assurances are given with respect thereto. TwentyFour, its affiliates and the individuals associated therewith may (in various capacities) have positions or deal in securities (or related derivatives) identical or similar to those described herein. This document is being made available in the UK to persons who are investment professionals as defined in Article 19 of the FSMA 2000 (Financial Promotion Order) Outside of the UK, it is directed at persons who have professional experience in matters relating to investments. Any investments to which this document relates will be entered into only with such persons. This document is not for distribution to retail customers. No action has been made or will be taken that would permit a public offering of the securities described herein in any jurisdiction in which action for that purpose is required. No offers, sales, resales or delivery of the securities described herein or distribution of any offering material relating to such securities may be made in or from any jurisdiction except in circumstances which will result in compliance with any applicable laws and regulations and which will not impose any obligation on TwentyFour or any of its affiliates. 8

9 Disclaimer This document does not disclose all the risks and other significant issues related to an investment in the securities and/or strategies. Prior to transacting, potential investors should ensure that they fully understand the terms of the securities and strategies and any applicable risks. This document is not a prospectus for any securities described herein. Investors should only subscribe for any securities described herein on the basis of information in the relevant prospectus (which has been or will be published and may be obtained from TwentyFour by visiting it s website and not on the basis of any information provided herein. TwentyFour Asset Management LLP is registered in England No. OC335015, and is authorised and regulated in the UK by the Financial Conduct Authority, FRN No Registered Office: The Monument Building, 11 Monument Street, London, EC3R 8AF. Copyright TwentyFour Asset Management LLP, 2017 (all rights reserved). This document is confidential, and no part of it may be reproduced, distributed or transmitted without the prior written permission of TwentyFour. This document is for information purposes only and does not constitute an offer, solicitation or recommendation to buy or sell shares of Vontobel Fund (the fund ) or any investment instruments, to effect any transactions or to conclude any legal act of any kind whatsoever. Subscriptions of shares of the fund, an investment fund governed by Luxembourg law in the form of an investment company with variable capital (SICAV) should in any event be made solely on the basis of the fund's current sales prospectus (the Sales Prospectus ), the Key Investor Information Document («KIID»), its articles of incorporation and the most recent annual and semi-annual report of the fund and after seeking the advice of an independent finance, legal, accounting and tax specialist. This document is directed only at recipients who are institutional clients such as eligible counterparties or professional clients as defined by the Markets in Financial Instruments Directive 2004/39/EC ( MiFID ) or similar regulations in other jurisdictions. In particular, we wish to draw your attention to the following risks: Investments in riskier, higher-yielding bonds are generally considered to be more speculative in nature. These bonds carry a higher credit risk and their prices are more volatile than bonds with superior credit ratings. There is also a greater risk of losing the original investment and the associated income payments. Investments in derivatives are often exposed to the risks associated with the underlying markets or financial instruments, as well as issuer risks. Derivatives tend to carry more risk than direct investments. Past performance is not a reliable indicator of current or future performance. The value of the money invested in the fund can increase or decrease and there is no guarantee that all or part of your invested capital can be redeemed. Performance data does not take into account any commissions and costs charged when shares of the fund are issued and redeemed, if applicable. The return of the fund may go down as well as up due to changes in rates of exchange between currencies. Interested parties may obtain the above-mentioned documents free of charge from the representative in Switzerland: Vontobel Fonds Services AG, Gotthardstrasse 43, 8022 Zurich, the paying agent in Switzerland: Bank Vontobel AG, Gotthardstrasse 43, 8022 Zurich, the paying agent in Germany: B. Metzler seel. Sohn & Co. 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