Phaidros Funds Fallen Angels A

Phaidros Funds
Fallen Angels A
ISIN: LU0872913917 / WKN: A1KBEL
Issue price
114.78 €
As of 08. April 2020
Redemption price
110.37 €
As of 08. April 2020
Total fund size
37,383,415.54 EUR
As of 08. April 2020
Fund type Corporate bonds high yield
Currency EUR
Risk / Return profile 3 of 7

Overview

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.

Opportunities

  • 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

Risks

  • 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.


Fund details

Share class:A
NAV per Share:110.37 EUR
Valued on:08.04.2020
ISIN / WKN:LU0872913917 / A1KBEL
Bloomberg:PHFFAEA: LX
Fund category:Corporate bonds high yield
Fund type:Luxemburg / FCP UCITS V
Currency:EUR
Launch date:01.02.2013
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:37,383,415.54 EUR
Registered:DE, AT, CH, LU
Traded:

Daily

Min. initial investment:none
Unit type:Accumulating

Costs

Initial fee:Max. 4.00%
Redemption fee:0.00%
Ongoing Charges/TER (As of: 19.02.2020):1.84%
Performance fee:10.00% from absolute return with high water mark

Growth





YTD-13.31%
20199.29%
2018-6.18%
20177.12%
20169.09%
2015-2.53%
20144.66%
YTD-13.31%
1yr-10.09%
3yrs ann.-2.38%
5yrs ann.-0.28%
Since inception10.37%

 

The data are historical data and do not guarantee future developments. The gross value development (BVI method) takes into account all costs incurred at the fund level (e.g. management fees, transaction costs, possibly performance-related fees), the net value development also takes into account the possible front-end load.

Additional costs may arise individually at the customer level (e.g. custody account fees, commissions and other fees). Exemplary model calculation (net) assuming a max. front-end load of 4%: An investor would like to purchase shares for EUR 1000. With a max. front-end load he has to pay a charge of 4% when buying (EUR 40). In addition, custody account costs may arise which reduce the performance. The deposit costs result from your bank's list of prices and services. Please refer to the cost details shown in the FUND DETAILS section of the website to determine the maximum front-end load of the sub-fund's share class.


Portfolio Breakdown

As of: 31.03.2020

Asset classesPtf. weightDuration*Yield to worst*Maturity*Rating*Market cap*
Corporate bonds85.84%4.58Y7.90%17.16YBBB
Convertibles
Government bonds
Cash14.16%

*weighted average

Asset classes

Sectors

Countries

Ratings

Top 10 Holdings


Management

Dr. Georg von Wallwitz
Dr. Georg von Wallwitz co-founded the company in 2004. Previously, he was fund manager for mutual and special funds at Hauck & Aufhäuser with a focus on global equity markets. Georg von Wallwitz studied mathematics and philosophy in Germany and England, was a visiting fellow in Princeton (USA) and is a Chartered Financial Analyst (CFA). Before joining Hauck & Aufhäuser, he worked in credit research and in international equity fund management at DWS in Frankfurt / Germany. He is the author of the books “Odysseus and the Weasels. A happy introduction to the financial markets”,“Mr. Smith and paradise. The Invention of Prosperity” and “Gentlemen, this is not a bathing establishment. How a mathematician changed the 20th century”.
 
 
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".


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MiFID II product information

As of January 3, 2018, investment services companies offering investment services under Directive 2014/65 / EU (Markets in Financial Instruments Directive - “Markets in Financial Instruments Directive -“ MiFID II ”) will have to meet certain new requirements regarding the distribution of investment funds within the framework comply with the respective implementing laws in the individual member states of the European Union. According to the new rules, investment services companies are obliged to determine or review the target market for each financial instrument they sell and to determine it more precisely. This means they have to indicate the type (s) of clients with whose needs, characteristics and objectives the financial instrument is compatible. MiFID II also introduces new cost disclosure requirements aimed at increasing cost transparency for investors, both quantitatively and qualitatively. Accordingly, investment services companies must disclose to the client all relevant costs, i.e. both in terms of investment services and of the product. These costs must be summarized and made available ex ante (i.e. before the customer purchases a product) and sometimes ex post during the holding period on at least an annual basis. The fund administration company of Phaidros Funds, IPConcept (Luxembourg), supports this process by providing the relevant data to the investment services companies to enable them to meet their new legal obligations.