SEB Corporate Bond Fund EUR
Fact sheet as of 26 April, 2024
Past performance does not guarantee future performance. The value of investment funds and other financial instruments may rise as well as fall and there is no guarantee you will recover your original investment. Key Information Document and prospectuses are available on www.sebgroup.lu/funds.
INVESTMENT TEAM
The fund is managed by the Fixed Income team in Stockholm with Mikael Anttila, Marianne Gut och Mattias Ekström as the principal managers.
risk measures 1
| Standard Deviation (Fund) | 7.0 |
|---|---|
| Standard Deviation (Index) | 7.5 |
| Tracking error | 1.15 |
| Sharpe Ratio | 0.07 |
| Information Ratio | 0.97 |
| Alpha | 1.11 |
| Beta | 0.92 |
| Active share | 96.92 |
Other information
As of 2 November 2016, the fund´s Management company is SEB Investment Management AB. SEB works actively with sustainability and follows the UN Principles for Responsible Investments. Read more at www.sebgroup.com
SEB Corporate Bond Fund EUR, 26 April 2024
Investment comment
- Government bond yields fell marginally
- US Federal Reserve continues to indicate interest rate cuts
- Fund performed clearly better than its index
Market Update
The US economy continued to perform stronger than expected. Inflation is on its way down, but at a slightly slower pace than forecast. Despite upward revised US growth, the US Federal Reserve (the Fed) signalled three 25 basis point interest rate cuts during the year. This is in line with market expectations. The same number of interest rate cuts are priced in by the market from the European Central Bank (ECB). The fact that the Fed is sticking to its interest rate cuts contributed to the fall in Treasury yields in March. There was a high level of activity in the credit market, especially in the high yield market, as many companies began to refinance the bond maturities that will come next year. Despite the supply, the strong momentum in the credit market continued.
Fund update
The fund has a substantial overweight in banks, particularly in subordinated debt. Consequently, the spread over government bonds is significantly higher than that of the index, at roughly 160 basis points. The fund’s duration is slightly shorter than the duration of its index. The largest positions in the fund, each accounting for around 2 per cent, are Volkswagen, BNP, Santander, KBC, HSBC, Danske Bank and Allianz. The running yield for the fund is higher than that of its index, at 4.3 per cent. The fund's performance was clearly higher than the performance of its index.
Strategy going forward
Our main scenario is that interest rate cuts are on the way and that this will provide support to the credit market. The fact that the US Federal Reserve continues to signal interest rate cuts is therefore positive, but the strong US economy has still increased uncertainty. Overall, the credit quality of companies is good, but the most heavily indebted companies are dependent on interest rates falling. The weak growth in important countries, such as Germany and China, is another negative factor. However, as long as the interest rate cut forecast remains unchanged, we find it difficult to see what would turn the credit market in a negative direction.
Key Facts
| Year of launch | 2001 |
|---|---|
| Value at launch (EUR) | 1.00 |
| Benchmark | Bloomberg Euro-Aggregate Corporate Index |
| Fund Management Company | SEB Investment Management AB |
| SRI scale 1-7 | 3 |
| ISIN | LU0133008952 |
| Base Currency | EUR |
| Share Class | C (EUR) |
| Legal Structure | UCITS |
| Morningstar rating | |
| Turnover Ratio | 0.201 |
| Use of derivatives | Yes2 |
Dividend
Non-distributing share class
Fund costs
More information
Welcome to contact your financial advisor for more information or visit www.sebgroup.lu.
Important information
This material is prepared by SEB and contains general information regarding financial instruments marketed, sold or solicited by SEB. SEB is the global brand name for Skandinaviska Enskilda Banken AB (publ), its subsidiaries and affiliated companies. Neither this material nor the products described in it are intended for distribution or sale in the United States or to US persons, and any such distribution is not allowed. The offering of shares or units in the funds may also be restricted in other jurisdictions. This document may not be used to make an offer or solicitation with respect to the sale of shares or units where such an offer or solicitation is unlawful. Although the information in this material is based on sources deemed by SEB to be reliable, SEB assumes no liability whatsoever for incorrect or missing information or for any loss, damage or claim arising from the use of this material. Past performance does not guarantee future performance. The value of investment funds and other financial instruments may rise as well as fall and there is no guarantee you will recover your original investment. If you or a fund invests in financial instruments denominated in a foreign currency, changes in currency exchange rates can affect the return on the investment. SEB makes no representation that funds whose share or unit classes aim at hedging the fund’s return from changes in currency exchange rates will succeed in achieving this. Any tax information in this material is based on regulations valid as per the date of this presentation and may be subject to change. Note that any tax information in this material is general. Kindly contact your SEB investment advisor for tax and investment advice appropriate for your situation. You are fully and solely responsible for your investment decision. This material is not intended for or suitable as the sole basis for investment decisions. Instead, you should base your decision on the information in the fund’s product documentation, including its fact sheet, Key Information Document, fund regulations and prospectus. These are available on www.sebgroup.lu/funds. Sunday, April 28, 2024 9:05:28 AM