STHYucits
Swan Short-Term High Yield is a SICAV-UCITS vehicle that invests in a highly diversified buy and hold portfolio of global liquid short-term bonds combined with an allocation to longer dated securities determined using a proprietary model. The spread duration of the fund can be up to 2.5 years.
The fund has been launched in June 2010 and has been managed with the same strategy since inception. Target Return is 3 months LIBOR + 250 bps. The fund has daily NAV calculation and is available in different currencies: EUR, CHF and USD.
Swan Short-term High Yield
Performance
Investment strategy
- Swan Short-Term High Yield strategy invests in global short-term and long-term Bonds, adapting geographical and sector exposure to actual markets conditions.
- Short-Term bonds’ maturity up to 24 months; Callable bonds are NOT considered as Short-Term; no AT1/Hybrids.
- Exposure to longer dated bonds determined by the Credit Allocation Scoring (CAS), a proprietary multifactorial analytical framework that analyzes Top-Down, Bottom-Up, Technical and Cross-Market, Valuation factors.
- FX risk completely hedged: the bonds in portfolio are all in hard currencies, hedged back in EUR using forwards.
- High fragmentation: portfolio diversified from a sector and geographic standpoint (limitations on maximum weight for country/sector); no single issuer higher than 3% weight.
- The investment decision is focused primarily on a fundamental analysis of default risk at the issuer/security level focusing on liquidity/cash flow analysis and evolution of credit metrics.
Characteristics of the fund
- Strong asset liquidability and cash generative profile (around 5% of bonds mature every month).
- Strong Diversification with 135 bonds out of 103 issuers.
- Spread Duration of 1.76 (21 months).
- Geographical breakdown: Developed Markets 85% – Emerging Markets 15%
- No negative return in any full calendar year since inception, the only exception being 2022.
| ANNUAL RETURN TARGET | LIBOR +2.50% |
|---|---|
| STANDARD DEV. AVERAGE from start (daily 1 yr) | 1.74% |
| EXCESS RETURN (last 1 yr) | 3.54% |
| SHARPE RATIO from start (daily 1 yr) | 2.22 |
