Horizon Emerging Market Corporate Bond Fund

For investors seeking to diversify their portfolio through exposure to emerging market corporate bonds

ISIN
LU1120395543

NAV
EUR 118.02
As of 18/09/2020

1-Day Change
EUR 0.04 (0.03%)
As of 18/09/2020

Morningstar Rating


Morningstar ratings are based on the representative share class of this fund and are dated to the last month-end upon availability from Morningstar.

Overview

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 JP Morgan Corporate Emerging Market Bond Index (CEMBI) Broad Diversified by 1.5% per annum, before the deduction of charges, over any 5 year period.

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The Fund invests at least 70% of its assets in bonds of any quality, including high yield (non-investment grade) bonds, asset-backed and mortgage-backed securities, and distressed debt, in emerging markets. The Fund may invest up to 20% of its net assets in contingent convertible bonds (CoCos). The Fund may invest up to 20% of its assets in China onshore bonds traded through Bond Connect.
Where investments are made in assets in currencies other than the base currency of the Fund, the Fund will seek to hedge those assets back to the base currency to remove the risk of currency exchange rate movements.
The Fund may also invest in other assets including 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 JP Morgan Corporate Emerging Market Bond Index (CEMBI) Broad Diversified, 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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The value of an investment and the income from it can fall as well as rise as a result of taxation arrangements or market and currency fluctuations and you may not get back the amount originally invested.
Potential investors must read the prospectus, and where relevant, the key investor information document before investing.
This website is for promotional purposes and does not qualify as an investment recommendation.

ABOUT THIS FUND

  • Seeks total return in excess of the benchmark by investing at least 70% in a diversified portfolio of corporate or other emerging market bonds and derivatives
  • Investment ideas generated from a bottom-up credit approach informed by a top-down sovereign and geopolitical view
  • Potential to deliver an attractive risk premium due to “emerging market” label despite investment-grade characteristics of much of the asset class
Past performance is not a guide to future performance. 
 

PORTFOLIO MANAGEMENT

Andrew Mulliner, CFA

Head of Global Aggregate Strategies | Portfolio Manager

Industry since 2006. Joined Firm in 2007.

Jennifer James

Portfolio Manager | Lead Emerging Markets Analyst

Industry since 1998. Joined Firm in 2014.

Performance

Past performance is not a guide to future performance. All performance data includes both income and capital gains or losses and reflects the deduction of any ongoing charges or other fund expenses.
Discrete Performance (%)
As of 30/06/2020
A2 Acc HEUR JP Morgan Corporate Emerging Market Bond Index (CEMBI) Broad Diversified
  
Jun-2019 - Jun-2020 Jun-2018 - Jun-2019 Jun-2017 - Jun-2018 Jun-2016 - Jun-2017 Jun-2015 - Jun-2016
1.52% 4.80% -4.73% 4.86% 4.64%
JP Morgan Corporate Emerging Market Bond Index (CEMBI) Broad Diversified 1.39% 6.94% -2.46% 4.94% 4.31%
 
Jun-2019 - Jun-2020 Jun-2018 - Jun-2019 Jun-2017 - Jun-2018 Jun-2016 - Jun-2017 Jun-2015 - Jun-2016
2.77% 6.19% -3.37% 6.38% 6.16%
JPM Corporate EM Bond Index Broad Diversified EUR Hgd + 1.50% 2.92% 8.54% -1.01% 6.51% 5.88%
Cumulative & Annualised Performance (%)
As of 31/08/2020
A2 Acc HEUR (Net) JP Morgan Corporate Emerging Market Bond Index (CEMBI) Broad Diversified
  
  Cumulative Annualised
1MO YTD 1YR 3YR 5YR 10YR Since Inception
05/11/2014
A2 Acc HEUR (Net) 0.81% 1.78% 3.68% 0.98% 2.85% - 2.88%
JP Morgan Corporate Emerging Market Bond Index (CEMBI) Broad Diversified 0.83% 1.93% 3.89% 2.40% 3.93% - 3.30%
 
  Annualised
3YR 5YR 10YR Since Inception
05/11/2014
A2 Acc HEUR (Gross) - 4.25% - 4.30%
JPM Corporate EM Bond Index Broad Diversified EUR Hgd + 1.50% - 5.48% - 4.85%
FEE INFORMATION
Initial Charge 5.00%
Annual Charge 0.75%
Ongoing Charge
(As of 31/12/2019)
1.20%

Portfolio

Documents

  • The value of the Funds and the income from them is not guaranteed and may fall as well as rise. You may get back less than you originally invested.
  • Past performance is not a guide to future performance.
  • Third party data is believed to be reliable, but its completeness and accuracy is not guaranteed.
  • 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. This risk is generally greater the longer the maturity of a bond investment.
  • 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.
  • Emerging markets expose the Fund to higher volatility and greater risk of loss than developed markets; they are susceptible to adverse political and economic events, and may be less well regulated with less robust custody and settlement procedures.
  • The Fund may invest in onshore bonds via Bond Connect. This may introduce additional risks including operational, regulatory, liquidity and settlement risks.
  • The Fund may use derivatives towards the aim of achieving its investment objective. This can result in 'leverage', which can magnify an investment outcome and gains or losses to the Fund may 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 class of a different currency to the Fund (unless 'hedged'), the value of your investment may be impacted by changes in exchange rates.
  • When the Fund, or a currency hedged share class of the Fund (with ‘Hedged’ in its name), seeks to mitigate (hedge) exchange rate movements of a currency relative to the Fund’s base currency, the hedging strategy itself may create a positive or negative impact to 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.
  • The Fund may incur a higher level of transaction costs as a result of investing in less actively traded or less developed markets compared to a fund that invests in more active/developed markets. These transaction costs are in addition to the Fund's Ongoing Charges.
  • 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 it trades becomes unwilling or unable to meet its obligations to the Fund.
  • Funds incur costs as a necessary part of buying and selling the underlying investments, these are otherwise known as portfolio transaction costs, and include charges such as broker commission and Stamp Duty.
  • For detailed product information including the risks associated with investing please read the relevant Prospectus or Annual Report.
  • Before investing in any of our funds you should satisfy yourself as to the suitability and the risks involved.
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