Investment objective
The Fund is passive and has the objective to track the performance of the iTraxx-CDX IG Global Credit Steepener Index (the Index). The Fund is passively managed. The Fund is denominated in EUR.
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The Fund will seek to achieve its investment objective primarily through Index CDS trading activity in order to track, as closely as possible, the performance of the Index.
The Fund aims to invest as far as possible in the fixed income exposures (such as through bonds and derivatives on CDS indices) that make up the Index. The Fund’s ultimate exposure will be to the 5 and 10 Year On-the-Run European and U.S. investment grade CDS credit curves.
The Fund will also seek to replicate the cash component return of the Index by investing its cash holdings in cash deposits, cash held with a custodian, short term debt securities, bonds that may be fixed or floating rate, certificates of deposit, bankers acceptances and money market instruments (such as short-term government bonds).
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About this fund
The Fund aims to directly replicate the index composition via CDS index positions and cash collateral (typically investment grade European sovereign bonds with maturity <12 months). To minimise counterparty risk, CDS trades are executed through regulated brokers and centrally cleared.
Why invest in this fund
Diversified source of yield
Currently offers 1% pick up over EUR Short term rates, with limited correlation to equity and credit markets.
Defensive approach
Designed to capture credit curve steepness while minimising exposures to credit spread movements.
Liquid and transparent
Rules-based exposure to liquid US and European CDS indices.
Performance scenarios
| Recommended hold period: 5 years Investment: 10000 € |
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| Scenarios | If you exit after 1 year | If you exit after the 5-year recommended holding period | |
| Minimum | There is no minimum guaranteed return. You could lose some or all of your investment. | ||
| Stress Scenario | What you might get back after costs | 8191.78 € | 9017.21 € |
| Average Return each year | -18.082% | -2.048% | |
| Unfavourable Scenario | What you might get back after costs | 9571.81 € | 9652.50 € |
| Average Return each year | -4.282% | -0.705% | |
| Moderate Scenario | What you might get back after costs | 10153.84 € | 10230.72 € |
| Average Return each year | 1.538% | 0.457% | |
| Favourable Scenario | What you might get back after costs | 10698.14 € | 11359.26 € |
| Average Return each year | 6.981% | 2.582% | |
