Epsilon Fund -
Euro Bond
Finding value by controlling volatility and drawdown
Epsilon Fund – Euro Bond is an actively managed product based on a model geared to achieving an optimal allocation of the risk budget among the various bond strategies, in order to maximize the fund's alpha and keep volatility and drawdown at contained levels.
The fund’s management process is disciplined and begins with an analysis of the economic cycle, taking into account fiscal and monetary policies, growth and inflation trends, to understand whether the market is correctly pricing in the different asset classes and securities. Particular focus is paid to risk control. The management team includes over 20 managers who are specialised in all the bond markets and divided by area of competence.
SFDR: The Fund promotes, among other characteristics, environmental or social characteristics as per Article 8 as per Regulation (EU) 2019/2088 on sustainability‐related disclosures in the financial services sector (“SFDR”).
A success story
Epsilon Fund – Euro Bond has won first prize as best EMU Government Bond fund in the 5-year category at the Lipper Fund Awards* in Switzerland, Austria, France and Nordic Countries, where it won also the award in the 3-year category.
The fund holds its appeal in both bullish and bearish market phases, ranks in the first quartile of the Morningstar EUR Government Bond category** across time horizons, and stably boasts a five-star Morningstar rating.
Investment Process
Creation of Alpha
| Target Markets | Skill & Performance Contribution | ||
| Duration, Curve Segments and Inflation Linkers | EMU Non-EMU | +++ | 45% |
| Country Spread and Swap | EMU | +++ | 40% |
| Forex | Mostly G 10 currencies | + | 5% |
| Credit | EMU Government Guaranteed EUR Corporate |
+ | 10% |
Main Risks of the sub-fund
The risk indicator assumes you keep the product for 4 years.
The summary risk indicator level is 3. Investments involve risks. Past performance does not predict future return. There can be no assurance that an investment objective will be achieved or that there will be a return on capital. You may not get back the amount initially invested. Before making any investment decision, investors must read the Prospectus as well as the Key Information Document (KID). The inherent main risks of the sub-fund (non-exhaustive list): Regulatory Risk, Market and Currency Risk, Credit Risk, Interest rate Risk, Counterparty and collateral Risk, Default Risk and Liquidity Risk.
Costs: (Illustrative class: LU0278427041 – registered in AT, BE, DE, DK, ES, FI, FR, IT, LU, NO, SE): Entry charge: 0%, Exit charge: 0%, Ongoing charge: 0,37%, Performance fee: 0,06%. The performance fee calculation is based on a comparison of the net asset value per unit against the High Water Mark where the High Water Mark is defined as the highest net asset value per unit recorded at the end of the five previous financial years, increased by the year-to-date return of the fund's benchmark. The actual amount will vary depending on how well your investment performs. The aggregated cost estimation above includes the average over the last 5 years.
The Fixed Income & FX team
The management team is highly specialized by area of competence: a feature that allows it to aim to take advantage of all the opportunities which arise on the market, and to select what they consider as the best strategies.
Key features***:
- 50 billion euros in AUM
- Team with a long track record in working together
- 24 Fund Managers with an average experience of 17 years
- Managing 214 portfolios
Investment Team subject to change without notice. Useful insights
Notes
* The Refinitiv Lipper Fund Awards 2024 were given to funds registered for sale in the respective geographical region/country, with at least 36 months of performance history as at 31 Dec. 2023. Within each Lipper fund classification, the award-winning fund ranks first in the Lipper Leaders classification in terms of Consistent Return, based on the Effective Return value, a measure of risk-adjusted return on various time horizons (daily, weekly, monthly and/or annual). The calculation periods extend over 3, 5, or 10 years.
Further details on the methodology used available at the following address http://lipperfundawards.com
** Source: Morningstar. A rating / award is drawn for illustration purposes only and is subject to change. It not a recommendation to invest in the Fund. It does not predict future performance of the Fund. There is no guarantee that the investment objective of the Fund will be reached. For more information about the rating / award (methodology, universe taken):
https://www.morningstar.com/content/dam/marketing/shared/research/methodology/771945_Morningstar_Rating_for_Funds_Methodology.pdf.
Morningstar Category: Morningstar assigns ratings based on comparisons of all funds within a specific Morningstar Category, rather than all funds in a broad asset class. Morningstar is not responsible for any damages or losses arising from any use of this information. For more information about the Morningstar Category: www.morningstar.com
*** Data as of: 31/03/2024
This marketing communication relates to Epsilon Fund (The “Fund”), a Luxembourg UCITS in accordance with Directive 2009/65/CE and the Luxembourg Law of 2010. This document is issued by Eurizon Capital S.A. organized as a public limited company in Luxembourg, at 28, boulevard Kockelscheuer, L-1821 Luxembourg, and authorised as management company of the Fund under the Law of 2010. This marketing communication is intended for professional investors as defined in the European Directive 2014/65/EU (MiFID) or relevant legislation in countries where the Fund is registered for distribution and is not intended for retail investors nor US Persons. Before taking any investment decision, read the Prospectus, the Key Information Document (the “KID”), and the last annual or semi-annual financial report, available in English (and the KIDs or in authorized language) on the website www.eurizoncapital.com.
This document does not constitute any legal, tax or investment advice. Past performance does not predict future returns. There is no guarantee that the forecasts will be reached in the future. Liaise with your tax and financial advisor to find out whether a product is suitable to you and understand the related risks and tax impacts. The tax treatment depends on the individual circumstances and may be subject to change in the future. A summary of investor rights is available in an official language (or authorised language) at www.eurizoncapital.com/en/investors-rights.
The Management company reserves the right to terminate the marketing arrangements of the Fund in your country. Before investing, read the risk section of the prospectus and the specific risks and costs related to the Fund. Also read the SFDR Pre-contractual disclosure, and the documents available in English or in authorized language, in the “Sustainability” section of the webpage: www.eurizoncapital.com.
SWITZERLAND:
In Switzerland this document is an advertising as per the Federal Act on Financial Services (FinSA), is intended for professional and institutional investors only and is not intended for retail investors. The representative and paying agent in Switzerland is Reyl & Cie SA, Rue du Rhône 62, CH-1204 Geneva. The prospectus, the KID, the fund regulation and the annual and semi-annual reports may be obtained from Reyl & Cie SA. Daily publication of the net asset values of the Units offered in Switzerland: www.fundinfo.com
CHILE:
In Chile when the Sub-Fund has been registered for distribution by the Comision Clasificadora de Riesgo (CCR) in Chile exclusively to Chilean Pension Funds under Agreement Nr 32 of the CCR, this document is not intended to investors who do not qualify as a Chilean Pension Funds. To find out whether this Sub-Fund is registered with the CCR, please refer to www.eurizoncapital.com.