USTBucits
Swan Ultra Short-Term Bond is a SICAV-UCITS vehicle that invests in a highly diversified buy and hold portfolio of global liquid short-term bonds, with an average maturity of around 1 year.
The fund has been launched in April 2009 and has been managed with the same strategy since inception. Target Return is 3 months LIBOR + 150 bps. The fund has daily NAV calculation and is available in different currencies: EUR, CHF and USD.
Swan Ultra Short-term Bond
Performance
Investment strategy
- Swan Ultra Short-Term Bond strategy invests in Global Ultra Short-Term Bonds, adapting geographical and sector exposure to actual markets conditions.
- Bonds’ maturity up to 30 months; Callable bonds are NOT considered as Short-Term; no AT1/Hybrids. Average Duration around 1 year.
- Buy and Hold approach: bonds are sold only when spreads become too tight or as precautionary liquidation due to credit deterioration.
- 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 165 bonds out of 140 issuers.
- Spread Duration of 1.38 (17 months).
- Geographical breakdown: Developed Markets 91% – Emerging Markets 9%
- No negative return in any full calendar year since inception, the only exception being 2022.
| ANNUAL RETURN TARGET | LIBOR +1.50% |
|---|---|
| STANDARD DEV. AVERAGE from start (daily 1 yr) | 1.07% |
| EXCESS RETURN (last 1 yr) | 2.71% |
| SHARPE RATIO from start (daily 1 yr) | 2.01 |
