For qualified investors in Switzerland

Horizon Euro Corporate Bond Fund

For investors seeking high-quality European credit exposure and an opportunity for total return that exceeds the benchmark

ISIN
LU1004011935

NAV
EUR 107.26
As of 21/09/2023

1-Day Change
EUR -0.11 (-0.10%)
 As of 21/09/2023

Morningstar Rating

As of 31/08/2023

Morningstar Medalist Rating ™

Bronze Morningstar Analyst Rating
As of 07/12/2022

Overview

Quarterly update

Watch the investment team recap this quarter.

(Note: Filmed in July 2023).

INVESTMENT OBJECTIVE

The Fund aims to provide a return, from a combination of income and capital growth over the long term.
Performance target: To outperform the iBOXX Euro Corporates Index by 1.5% per annum, before the deduction of charges, over any 5 year period.

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The Fund invests at least 80% of its assets in investment grade corporate bonds and other types of investment grade bonds, denominated in Euros. The Fund may invest up to 20% of its net assets in total return swaps, and may invest in contingent convertible bonds (CoCos); and/or asset-backed and mortgage-backed securities.
The Fund may also invest in other assets including bonds of other types from any issuer (including perpetual bonds), cash and money market instruments.
The investment manager may use derivatives (complex financial instruments), including total return swaps, with the aim of making investment gains in line with the Fund's objective, to reduce risk or to manage the Fund more efficiently.
The Fund is actively managed with reference to the iBOXX Euro Corporates Index, which is broadly representative of the bonds in which it may invest, as this forms the basis of the Fund's performance target. The investment manager has discretion to choose investments for the Fund with weightings different to the index or not in the index, but at times the Fund may hold investments similar to the index.

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ABOUT THIS FUND

  • Invests primarily in euro-denominated, investment-grade corporate bonds
  • Careful security analysis ensures positions reflect conviction and opportunity rather than benchmark weights
  • Strong security analysis blended with top-down macroeconomic analysis, diversification, and risk management

PORTFOLIO MANAGEMENT

Tim Winstone, CFA

Tim Winstone, CFA

Portfolio Manager

Industry since 2003. Joined Firm in 2015.

Tom Ross, CFA

Tom Ross, CFA

Global Head of High Yield | Portfolio Manager

Industry since 2002. Joined Firm in 2002.

Performance

Cumulative & Annualised Performance (%)
As of 31/08/2023
G2 EUR (Net) iBoxx Euro Corporates
  
  Cumulative Annualised
1MO YTD 1YR 3YR 5YR 10YR Since Inception
10/04/2014
G2 EUR (Net) 0.13 3.12 -0.14 -3.60 -0.76 - 0.80
iBoxx Euro Corporates 0.13 3.34 0.97 -3.54 -1.04 - 0.63
 
  Annualised
3YR 5YR 10YR Since Inception
10/04/2014
G2 EUR (Gross) - -0.35 - 1.31
iBoxx Euro Corporates + 1.50% - 0.45 - 2.14

Documents

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Our intellectual capital is readily available and central to our Knowledge Shared approach"
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  • An issuer of a bond (or money market instrument) may become unable or unwilling to pay interest or repay capital to the Fund. If this happens or the market perceives this may happen, the value of the bond will fall.
  • When interest rates rise (or fall), the prices of different securities will be affected differently. In particular, bond values generally fall when interest rates rise (or are expected to rise). This risk is typically greater the longer the maturity of a bond investment.
  • The Fund invests in high yield (non-investment grade) bonds and while these generally offer higher rates of interest than investment grade bonds, they are more speculative and more sensitive to adverse changes in market conditions.
  • Callable debt securities, such as some asset-backed or mortgage-backed securities (ABS/MBS), give issuers the right to repay capital before the maturity date or to extend the maturity. Issuers may exercise these rights when favourable to them and as a result the value of the fund may be impacted.
  • If a Fund has a high exposure to a particular country or geographical region it carries a higher level of risk than a Fund which is more broadly diversified.
  • The Fund may use derivatives to help achieve its investment objective. This can result in leverage (higher levels of debt), which can magnify an investment outcome. Gains or losses to the Fund may therefore be greater than the cost of the derivative. Derivatives also introduce other risks, in particular, that a derivative counterparty may not meet its contractual obligations.
  • If the Fund holds assets in currencies other than the base currency of the Fund, or you invest in a share/unit class of a different currency to the Fund (unless hedged, i.e. mitigated by taking an offsetting position in a related security), the value of your investment may be impacted by changes in exchange rates.
  • When the Fund, or a share/unit class, seeks to mitigate exchange rate movements of a currency relative to the base currency (hedge), the hedging strategy itself may positively or negatively impact the value of the Fund due to differences in short-term interest rates between the currencies.
  • Securities within the Fund could become hard to value or to sell at a desired time and price, especially in extreme market conditions when asset prices may be falling, increasing the risk of investment losses.
  • Some or all of the ongoing charges may be taken from capital, which may erode capital or reduce potential for capital growth.
  • The Fund may invest in contingent convertible bonds (CoCos), which can fall sharply in value if the financial strength of an issuer weakens and a predetermined trigger event causes the bonds to be converted into shares of the issuer or to be partly or wholly written off.
  • The Fund could lose money if a counterparty with which the Fund trades becomes unwilling or unable to meet its obligations, or as a result of failure or delay in operational processes or the failure of a third party provider.