Phaidros Funds Fallen Angels invests in fallen angel corporate bonds. A “fallen angel” is the common term for bond that was rated investment grade at the time of issuance but that has fallen into below-investment grade, or high yield, territory following a downgrade to its credit rating. Typically, the fall from investment grade to high yield status is accompanied by a sharp price decline for the bond in question. In addition, the downgrade is often accompanied by mandatory selling from managers who are only allowed to hold investment grade bonds. Many fallen angels therefore begin their time in the high yield asset class at very cheap prices that are often less than their true worth. The result is an opportunity for price appreciation as the selling abates and, possibly, the bonds eventually return to investment grade status. About one-third of the time, fallen angels make the return trip from high yield to investment grade – an event that can lead to outstanding price appreciation.
Fallen Angel is an official name of the rating agency Standard & Poor’s. It stands for bonds from large, established companies such as Glencore, Teva, Lufthansa, Anglo American and Volkswagen (as of 06/2018). You have a far lower probability of default than the entire high-yield investment universe.
With this successful investment product, we aim to achieve an attractive long-term performance with moderate price fluctuations through an income-oriented risk/return profile.
Good return potential by focusing on bonds that had an investment grade rating when they were originally issued, but have since been downgraded to high yield status (so-called Fallen Angels)
Liquid market and low default rates Risk-oriented, opportunistic allocation without reference to conventional market indices
Good potential for share price increase if the bond should return to investment grade status
The fund NAV and its income can fall or rise, particularly as a result of changes in the capital markets. This may in turn result in the fund NAV falling below the amount you originally invested and / or the fund not achieving its investment objectives.
The fund invests primarily in high-yield bonds. The issuers of these bonds may become insolvent, which can result in the value of the bonds being lost in whole or in part.
Since the fund invests in bonds, changes in interest rates can have a positive or negative impact on the fund's value.
|NAV per Share:||121.94 EUR|
|ISIN / WKN:||LU0872913917 / A1KBEL|
|Fund category:||Corporate bonds high yield|
|Fund type:||Luxemburg / FCP UCITS V|
|Fiscal year:||01.04. - 31.03.|
|Administration:||IPConcept (Luxemburg) S.A.|
|Custodian:||DZ PRIVATBANK S.A.|
|Fund manager:||Eyb & Wallwitz Vermögensmanagement GmbH|
|Total fund size:||37,864,102.95 EUR|
|Registered:||DE, AT, CH, LU|
|Min. initial investment:||none|
|Initial fee:||Max. 4.00%|
|Ongoing Charges/TER (As of: 31.03.2020):||1.77%|
|Performance fee:||10.00% from absolute return with high water mark|
Past performance is not indicative of future results. The gross value performance (BVI method) takes into account all costs incurred at the fund level (such as management fees, transaction costs, performance-based fees); the net value performance also takes into account possible front-end loads.
Additional costs may be incurred at the individual client level (such as custodian account fees, commissions, and other fees). Sample (net) model calculation, assuming a maximum front-end load of 4%: you, an investor, would like to buy EUR 1,000.00 in shares. With a maximum front-end load of 4%, you would be required to pay a one-time fee of EUR 40.00 at the time of purchase. In addition, you may incur custodian account fees, which will reduce performance and be based on your bank’s list of prices and services. To determine the maximum front-end load of the sub-fund’s share class, please see the cost details presented in the FUND DETAILS section of the website.
As of: 31.08.2020
|Asset classes||Ptf. weight||Duration*||Yield to worst*||Maturity*||Rating*||Market cap*|
Top 10 Holdings
Dr. Georg von Wallwitz
Dr. Ernst Konrad
Dr. Ernst Konrad is second managing director at Eyb & Wallwitz since 2009. From 2005 to 2008 he headed the BayernInvest equity division and was also responsible for the asset allocation of the entire company. At that time, BayernInvest was one of the largest German capital management companies with a managed volume of around 22 billion euros. Before that, Dr. Konrad works as a fund manager at Hauck & Aufhäuser Privatbankiers, Pioneer Investments and Hypovereinsbank. He completed his studies in economics at the LMU Munich and received his doctorate there with a dissertation on industrial economics. Ernst Konrad is the author of numerous publications in the areas of economics, capital markets and portfolio management, including in the magazine "Financial Markets and Portfolio Management".
MiFID II product information
As of 3 January 2018, investment services companies that offer investment services falling within the purview of Directive 2014/65/EU (Markets in Financial Instruments Directive – “MiFID II”) must comply with certain new requirements regarding the distribution of investment funds, as those requirements are implemented through the legislation enacted by each of the individual Member States of the European Union.
Under the new rules, investment services companies are required to identify or to review and to specify more precisely the target market for each financial instrument they sell. These new rules require, therefore, that these companies specify the type(s) of clients with whose needs, characteristics, and objectives the financial instrument is compatible. MiFID II also introduces new cost disclosure requirements designed to increase cost transparency for investors at both the quantitative and the qualitative levels. Accordingly, investment services companies are required to disclose to the client any and all relevant costs: that is, both in terms of the investment services and in terms of the product. These costs must be summarized and made available both ex ante (that is, prior to any product purchase by the client) and ex post during the holding period on at least an annual basis.
Phaidros Funds’ capital management company, IPConcept (Luxembourg), supports this process by providing the relevant data to the investment services companies to enable them to meet their new legal obligations.