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Ethna-DEFENSIV


The Ethna-DEFENSIV is a bond-oriented, multi-asset fund that does not follow any benchmarks. The actively-managed fund, which has the most defensive risk profile of the Ethna Funds, focuses on bonds from issuers in OECD countries, with its core investment in a high-quality portfolio of government and corporate bonds.

 

Portfolio Manager Update

Performance Description
Share class
D-1
YTD
5 years
Ethna-DEFENSIV (A)
ISIN: LU0279509904 | WKN: A0LF5Y
D-1
0,22%
YTD
0,51%
6,71%
Ethna-DEFENSIV (T)
ISIN: LU0279509144 | WKN: A0LF5X
D-1
0,22%
YTD
0,51%
6,70%

All data as of: 18/06/2021

The Ethna-DEFENSIV is a bond-oriented, multi-asset fund that does not follow any benchmarks. The actively-managed fund, which has the most defensive risk profile of the Ethna Funds, focuses on bonds from issuers in OECD countries, with its core investment in a high-quality portfolio of government and corporate bonds. Although these bonds tend to be of a more conservative nature, they are managed in a very flexible manner. This allows us to quickly align the fund’s risk profile to prevailing market conditions and to take advantage of attractive single name securities. In addition, bonds with a rating below investment-grade can be added.

The Ethna-DEFENSIV can also include up to 10% in equities, which it generally does through futures. Last but not least, the fund may include up to 10% in commodities in its portfolio, which it generally does through ETCs. Another important performance driver of the fund is the active management of spreads, duration, and currency through liquid instruments, also known as overlay management. Spread risks and duration are managed by actively adjusting maturities and swapping bond issuers. In the Ethna-DEFENSIV, duration can also be managed using Bund and Treasury futures; while currency is managed via currency forwards.

The top-down approach in the Ethna-DEFENSIV

The Ethna-DEFENSIV’s Portfolio Management Team, which has a proven track-record in the fixed income space, uses a top-down approach with a clear view of macroeconomic developments to determine not only the appropriate bond allocation but also its investments in other asset classes. This, together with its bottom up bond selection process, means that the Ethna-DEFENSIV can flexibly select the most appropriate opportunities available while, at the same time limit potential risks, and manage its volatility and drawdowns.

The Ethna-DEFENSIV as a base investment for conservative investors

With a balanced investment strategy that values diversification and liquidity, the Ethna-DEFENSIV’s aims are capital preservation and generating positive returns over a mid-term (3 – 5 year) investment horizon. This makes it suitable as a base investment for conservative investors who want to benefit from a lower risk strategy in the global financial markets.

 

The Ethna-DEFENSIV is a bond-oriented, multi-asset fund that does not follow any benchmarks. The actively-managed fund, which has the most defensive risk profile of the Ethna Funds, focuses on bonds from issuers in OECD countries, with its core investment in a high-quality portfolio of government and corporate bonds. Although these bonds tend to be of a more conservative nature, they are managed in a very flexible manner. This allows us to quickly align the fund’s risk profile to prevailing market conditions and to take advantage of attractive single name securities. In addition, bonds with a rating below investment-grade can be added.

The Ethna-DEFENSIV can also include up to 10% in equities, which it generally does through futures. Last but not least, the fund may include up to 10% in commodities in its portfolio, which it generally does through ETCs. Another important performance driver of the fund is the active management of spreads, duration, and currency through liquid instruments, also known as overlay management. Spread risks and duration are managed by actively adjusting maturities and swapping bond issuers. In the Ethna-DEFENSIV, duration can also be managed using Bund and Treasury futures; while currency is managed via currency forwards.

The top-down approach in the Ethna-DEFENSIV

The Ethna-DEFENSIV’s Portfolio Management Team, which has a proven track-record in the fixed income space, uses a top-down approach with a clear view of macroeconomic developments to determine not only the appropriate bond allocation but also its investments in other asset classes. This, together with its bottom up bond selection process, means that the Ethna-DEFENSIV can flexibly select the most appropriate opportunities available while, at the same time limit potential risks, and manage its volatility and drawdowns.

The Ethna-DEFENSIV as a base investment for conservative investors

With a balanced investment strategy that values diversification and liquidity, the Ethna-DEFENSIV’s aims are capital preservation and generating positive returns over a mid-term (3 – 5 year) investment horizon. This makes it suitable as a base investment for conservative investors who want to benefit from a lower risk strategy in the global financial markets.

 

 

 

Legal notices: An investment in investment funds, as with all securities and comparable financial assets, carries the risk of capital or currency losses. Consequently, the unit price and the yield are variable and cannot be guaranteed. The costs of a fund investment have an effect on the actual profit. No guarantee can be given that the investment objectives will be achieved. The statutory sales documents (Key Investor Information Document, sales prospectuses and reports) provide detailed information on potential risks and form the sole legal basis for a purchase of units. These documents can be obtained free of charge from the management company, ETHENEA Independent Investors S.A., the custodian bank, as well as the relevant national paying and information agents. All information published here constitutes a product description only. It does not constitute investment advice, an offer to enter into an agreement for the provision of advice or information, or an offer to buy or sell securities. The contents have been carefully researched, compiled and checked. No guarantee can be given for correctness, completeness or accuracy. The information includes past data which are no indicator of future performance. The management fee, custodian bank fee and all other additional costs are taken into account in the calculation of the unit price as stated in the provisions of the contract. Performance is calculated using the BVI method (German federal association for investment and asset management), which means that the calculations do not include an issuing charge, transaction costs (such as order fees and brokerage fees), custodian bank fees, or other management fees. Including the issuing surcharge would reduce performance. The performance shown is not a reliable indicator of future performance. © 2021 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar Rating past performance is no guarantee of future results. For more detailed information about Morningstar Rating, including its methodology, please go to: https://shareholders.morningstar.com/investor-relations/governance/Compliance--Disclosure/default.aspx