New Capital
Euro Value Credit Fund

»Grazia Cozzi & Roberto Matta

Carefully assessing a country’s risk profile

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Carefully assessing a country’s risk profile

The New Capital Euro Value Credit Fund seeks long-term capital appreciation through a combination of capital growth and income. The Fund invests in medium to long-term international debt securities issued predominantly in euros. The Fund is actively managed for country, credit and interest rate exposure.

The European Value Credit Fund takes advantage of market mispricing overlooked by less innovative European fixed-income funds. This market has tended to rely heavily on the overconcentrated benchmark in which the top five countries account for 68% of allocation. Our benchmark agnostic position means we can take advantage of opportunities offered by countries outside the top five.

The fund’s geographical spread sets it apart from its peers. Key to this is the careful assessment of a country’s risk profile and value. We look at a country’s NFA position as well traditional metrics and its central banking policy. Central banks across Europe have purchased bonds in a bid to inject liquidity into sluggish economies, but in doing so have skewed prices.

We also look at the domestic and geopolitical issues affecting each country when assessing bonds for this fund. Cyclical global economic conditions are a big consideration and we allocate differently according to a country’s strength or weakness. We invest across the cycle in strong countries, and more tactically in vulnerable countries.

Like the other relative-value funds in the range, the European Value Credit Fund benefits from assessment of duration risk and credit quality versus the benchmark followed by our bottom-up quantitative relative-value model (among other analyses). When combined with the extensive geographical assessment these practices allow us to find mispriced, good-value bonds in under-exploited European markets.

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RELATIVE VALUE INVESTING EXPLAINED

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  1 Year YTD
Fund
Benchmark
»TERMSHEET

PRICES AND LITERATURE

Class ISIN Price Currency Price Date Factsheet Datasheet KIID
EUR Inst Acc IE00BF2B2Y39 100.98 EUR 12/13/2017 - -
EUR Ord Acc - N/A - N/A - -
EUR Ord Inc - N/A - N/A - -
CHF Inst Acc - N/A - N/A - -
CHF Ord Acc - N/A - N/A - -
USD Inst Acc IE00BF2B3627 100.73 USD 12/13/2017 - -

DOWNLOAD FUND DOCUMENTS FOR DUE DILIGENCE

Reports & Accounts
Annual Report-ENG
Semi-Annual Report-ENG
Prospectus
Full Prospectus-ENG
How to Invest
Application Form
Shareholder Notice
Shareholder Notice-ENG
HMRC Year End Reporting
HMRC Reporting-ENG
Registration Matrix
Registration Matrix-ENG
Dealing Calendar
Dealing Calendar-ENG
Memorandum and Articles of Association
Memorandum and Articles of Association-ENG