I2 Shares

Efficient portfolio allocation consisting of 50% credit and 50% longterm government bonds

Top-down allocation via scenario analysis, fundamental bottom-up approach for credit

Consideration of relevant ESG aspects along all steps of the investment process

Indexed performance (as at: 20.11.2024)

NAV: EUR 127.20 (19.11.2024)

01 Jan 2010 - 01 Jan 2010

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I2-EUR

Benchmark

Rolling performance (20.11.2024)

	I2-EUR	Benchmark
19.11.2023 - 19.11.2024	7.76%	n.a.
19.11.2022 - 19.11.2023	3.21%	n.a.
19.11.2021 - 19.11.2022	-8.07%	n.a.

Annualized performance (20.11.2024)

	I2-EUR	Benchmark
1 year	7.76%	n.a.
3 years	0.74%	n.a.
Since Inception p.a.	0.56%	n.a.

Cumulative performance (20.11.2024)

	I2-EUR	Benchmark
1M	-0.20%	n.a.
YTD	4.61%	n.a.
1 year	7.76%	n.a.
3 years	2.24%	n.a.
Since Inception	1.76%	n.a.

Annual performance

	I2-EUR	Benchmark
2023	5.51%	n.a.
2022	-7.09%	n.a.

Facts & Key figures

Investment Focus

The fund is an unconstrained fixed income fund with the objective of achieving an excess return of 2-4% p.a. versus the respective 3-month money market rate over the cycle. The fund is actively managed and invests in bonds worldwide, with a neutral portfolio made of 50% credit and 50% longterm government bonds. Scenario analysis and proprietary valuation models support an experienced team of specialists to express their market views and to define the most successful top down allocation. For the selection of credit a fundamental bottom-up approach is applied. The management team has the option to invest in government bonds via futures markets. The portfolio is mainly invested in liquid assets, the fund offers daily liquidity. The fund takes ESG factors into consideration while implementing the aforementioned investment objectives.Show moreShow less

Investment suitability & Risk

SRI

Low risk

High risk

The Fund’s objective is to achieve an excess return versus the respective 3-month money market rate over the cycle. It is therefore particularly suited to investors with an investment horizon of at least 3 years. The base currency of the Fund is EUR.

General Information

Investment Manager	Bellevue Asset Management AG
Custodian	CACEIS BANK, LUXEMBOURG BRANCH
Fund Administrator	CACEIS BANK, LUXEMBOURG BRANCH
Auditor	PriceWaterhouseCoopers
Launch date	30.09.2021
Year end closing	30. Jun
NAV Calculation	Daily "Forward Pricing"
Cut of time	15:00 CET
Management Fee	0.60%
Subscription Fee (max.)	5.00%
ISIN number	LU2382178221
Valor number	113469150
Bloomberg	BGINI2E
WKN	A3C4GF

Legal Information

Legal form	Luxembourg UCITS V SICAV
SFDR category	Article 8

Key data (31.10.2024, base currency EUR)

Volatility	2.31
Sharpe ratio	-0.85
No. of positions	56

Benefits & Risks

Benefits

Fund targets a risk adjusted return of 2% to 4% over the respective 3-month money market rate return across the economic cycle.
Backed by credit analysis with a solid track record at Bellevue since June 2015.
Government bonds overlay acts as a hedge while contributing to performance.
Ability to assume leverage and to go short for hedging purpose.
UCITS V regulated unconstrained total return strategy with daily liquidity.

Risks

The fund may engage in derivatives transactions. The increased opportunities gained come with an increased risk of losses.
The fund actively invests in bonds. Their issues may become insolvent.
The investment in fixed-interest securities gives rise to interest rate risks
Investing in emerging market bonds entails the additional risk of political and social instability.
The fund invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.

Review / Outlook

In October, the fund returned -0.28% with a volatility of 1.9%. The Bloomberg Global Aggregate EUR-hedged Index lost 1.54%. Year-to date, the fund has achieved a 4.07% return compared to 1.52% for the index.

This month’s contributors were credit +0.32% and government bonds -0.59%. The resilience of developed economies led financial markets to reassess rate cut expectations, impacting most asset classes and strengthening the USD. Credit contributed positively, driven by holdings in Coco and corporate hybrid bonds, alongside a 9% USD exposure. Government bonds were penalized by the 50 bps increase in the US 10-year treasury yield to 4.3%.

During the month, we lowered slightly the allocation to credit from 65% to 64% and to long term government from 22% to 20% in anticipation of higher volatility ahead of the US presidential election. Within the credit portfolio, we switched out of La Banque Postale Coco into La Mondiale RT1 bond. RT1 bonds are specific to insurance companies and are similar to Cocos. However, we consider them as safer than Cocos because they feature write-down / write-back clauses rather than permanent write-off and insurers are less vulnerable to sudden client withdrawals than banks. The fund offers a EUR yield of 4.2% with a duration of 3.8 years and an average credit rating of A-.

During our March 6 review, we noted the resilience of the US economy and lowered the overall weight of the recession scenarios:

Scenario 1, weight increased to 30% from 25%: Investments in IT accelerate, central banks end rate increases, inflation falls. The market continues to rally. Economic indicators are mixed. The economy is recovering in the US while it is still weak in Europe. Any positive economic news, such as booming artificial intelligence (AI) related investments or a recovery in manufacturing PMIs, would be positive for equity and credit markets. This is neutral to negative for government bonds and negative for the USD.

Scenario 2, weight maintained at 50%: The US economy drifts into a mild recession. Several mitigating factors are likely to dampen the market correction and result in a loss of 5-10%: liquidity is still abundant, PMIs have reached a bottom and the boom in AI-related investments continues. This scenario is negative for credit and slightly positive for government bonds.

Scenario 3, weight lowered to 20% from 25%: Credit conditions in the US deteriorate, developed economies fall into a global recession. Under this scenario, inflation persists, and the Fed’s restrictive monetary policy starts to impact the economy. Equity and credit markets correct. This is positive for government bonds, the USD and potentially gold.

Documents

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ESG

Co-Lead Portfolio Manager
Alexandrine Jaecklin
Alexandrine Jaecklin joined Bellevue Asset Management in June 2015 as portfolio manager in charge of the bond selection. Before, Alexandrine worked for 15 years at UBS. She joined UBS as a credit analyst for Emerging Markets on the sell side in New York and London, and then moved to the Wealth Management in Zürich to cover European Financial credits. She spent the last 6 years of her time at UBS advising directly institutional private clients with a focus on bond markets on managing their portfolio. Prior to UBS, she was an research analyst at Laidlaw Global Securities (New York), Smith Barney (New York), and the United Overseas Bank (BNP subsidiary - Geneva) in the fields of Emerging Markets and fixed income. She holds a Master in International Relations, Economics section, from the Graduate Institute of International Studies (HEI) in Geneva.
Co-Lead Portfolio Manager
Malek Bou-Diab
Malek Bou-Diab joined the Bellevue Global Macro team as Portfolio Manager in August 2024. He joined Bellevue Asset Management in 2009 as Senior Portfolio Manager Frontier Markets and Quant Analyst. Prior to that, he worked as Portfolio Manager at Julius Baer in the Emerging Markets team. From 2003 to 2007 he worked as a quantitative risk analyst at Deutsche Bank AG in London. He completed his PhD thesis in theoretical physics at the Swiss Federal Institute of Technology Zurich (ETH) between 1999 and 2003.
Head Investment & Products
Markus Peter
Markus Peter joined Bellevue Asset Management in early 2009 as head investments and products. He previously held several management positions during his 10 years with Julius Baer Group, including head product management and development, investment advisory as well as a product specialist for absolute return products. Prior to joining Julius Baer he was employed by IBM, treasury and project finance, as well as by Swiss Bank Corporation, equity and equity derivative trading. Markus Peter holds a master in business economics from the University of St. Gallen (HSG).