Ethna-DEFENSIV
Fund profile
The Ethna-DEFENSIV is a fixed income fund that does not follow any benchmarks. The actively managed fund with the most defensive risk profile among the Ethna Funds, invests primarily in bonds issued by OECD countries. The high-quality bond portfolio consists mainly of government and corporate bonds. These bonds tend to be more conservative in nature and are managed in a very flexible manner. This allows us to quickly align the fund's risk profile to prevailing market conditions and to take advantage of attractive single name securities. In addition, bonds with a rating below investment-grade can be added.
In line with the principle of maximum flexibility, Ethna-DEFENSIV is able to exploit the full range of the bond segment, thereby increasing its return potential. Another important driver of the fund's performance is the active management of spreads, duration and currency through liquid instruments, also known as overlay management. Spread risks and duration are managed by actively adjusting maturities and bond issuers. In addition, the duration of the Ethna-DEFENSIV can also be managed through the use of futures and the currency through forward exchange transactions.
The top-down approach in the Ethna-DEFENSIV
The Ethna-DEFENSIV’s Portfolio Management Team, which has a proven track-record in the fixed income space, uses a top-down approach with a clear view of macroeconomic developments to determine not only the appropriate bond allocation but also its investments in other asset classes. This, together with its bottom up bond selection process, means that the Ethna-DEFENSIV can flexibly select the most appropriate opportunities available while, at the same time limit potential risks, and manage its volatility and drawdowns.
The Ethna-DEFENSIV as a base investment for conservative investors
With a balanced investment strategy that values diversification and liquidity, the Ethna-DEFENSIV’s aims are capital preservation and generating positive returns over a mid-term (3 – 5 year) investment horizon. This makes it suitable as a base investment for conservative investors who want to benefit from a lower risk strategy in the global financial markets.
Portfolio Managers
ESG
ESG – taking environmental, social and governance criteria into account
Our aim is to offer clients responsible investment solutions with a competitive and sustainable return, as reflected in our investment guidelines and processes. The Ethna-DEFENSIV pursues an ESG strategy that complies with Article 8 of the EU’s Sustainable Finance Disclosure Regulation (2019/2088). In its bond and equity investments, the fund therefore gives preference to companies that have low exposure in terms of significant ESG risks, as well as companies that actively manage and thus reduce the ESG risks inevitably associated with their business activities. In addition, the sustainability approach taken by the Ethna-DEFENSIV is underscored by comprehensive exclusions:
- Investments in companies with a core activity in armaments, tobacco, pornography, speculation in basic foodstuffs and/or the mining/distribution of coal are prohibited.
- Furthermore, we do not invest in companies that have been found to be in serious breach of the principles of the UN Global Compact and have no convincing plan in place to remedy the situation.
- In the case of sovereign issuers, we exclude investments in countries that have been designated as “Not Free” in the annual analysis carried out by Freedom House.
Opportunities & Risks
All financial investments are associated with opportunities and risks. Below you will find a compact overview of the opportunities and risks of the Ethna-DEFENSIV:
Opportunities
- A professional Portfolio Management Team with many year of experience.
- Participation in positive performance of bond markets.
- Reduction of value fluctuations by spreading the investment capital over a large number of individual securities (diversification).
- Active risk management and hedging transactions (emphasis on capital preservation).
- Active portfolio management with the aim of delivering positive returns, even in a weak market phase.
- Stability and continuity by focusing on fixed income securities.
Risks
- Market, sector and company-related price losses in the fund’s bonds investments; also as a result of a general rise in yields and/or increase in yield premiums for specific bond issuers.
- General, geographical and geopolitical country risks; these include the risk that an issuer of a bond, despite being solvent, cannot fulfil its obligations due to an inability or unwillingness on the part of a particular country to transfer funds to another country.
- Issuer, counterparty credit and default risk due to investing in bonds and hedging trades; these include the risk of insolvency due to issuer or counterparty debt overload or illiquidity. A total loss of the affected investment instrument is possible.
- Exchange rate risks through investing in foreign currencies or bonds denominated in a foreign currency.
- The investor suffers a loss if they sell the fund units at less than the purchase price.
For detailed information on the opportunities and risks of investing in the fund, please refer to the sales prospectus.
The Ethna-DEFENSIV is a bond fund that does not follow any benchmarks. The actively-managed fund, which has the most defensive risk profile of the Ethna Funds, focuses on bonds from issuers in OECD countries, with its core investment in a high-quality portfolio of government and corporate bonds.
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Applies, among others, to the share class Ethna-DEFENSIV (A). |
Out of 5 657 Cautious Allocation funds as of 30.04.2022. |
Risk notice regarding an error in the calculation of the net asset value, in the event of violations of the applicable investment regulations and other errors The process of calculating the net asset value (“NAV”) of a fund is not an exact science and the result of this calculation can therefore only represent the greatest possible approximation to the actual total value of the Fund. Accordingly, despite the greatest possible care, it cannot be ruled out that inaccuracies or errors occur in the calculation of the NAV. Should an inaccuracy and/or an error in the calculation of the NAV cause damage to the final beneficiary investors (“end investors”), this shall be replaced in accordance with the provisions of CSSF Circular 24/856. In the event that shares have been subscribed through a financial intermediary (e.g. credit institutions or asset managers), the rights of end investors in relation to compensation payments may be affected. For end investors who subscribe to (sub-)fund shares through financial intermediaries, there is therefore the risk in the event of an incorrect calculation of the NAV in the above-mentioned sense of not receiving compensation. The end investors shall always be compensated for an error in the NAV calculation, in the event of violations of the applicable investment regulations and other errors in accordance with the provisions of CSSF Circular 24/856. With regard to end investors who no longer hold shares in the (sub-)fund, but who are entitled to compensation and are no longer to be determined, the compensation shall be deposited with the Caisse de consignation of the Luxembourg Financial Administration. An incorrect calculation of the NAV or other errors may also be made in favour of the end investors and at the expense of the Fund/sub-funds. In this case, it is at the discretion of the Management Company or the Investment Company to demand compensation from the end investors on behalf of the Fund/Investment Company, provided that the end investors are knowledgeable or professional investors. This is a marketing communication. It is for information purposes only and provides the addressee with guidance on our products, concepts and ideas. This does not form the basis for any purchase, sale, hedging, transfer or mortgaging of assets. None of the information contained herein constitutes an offer to buy or sell any financial instrument nor is it based on a consideration of the personal circumstances of the addressee. It is also not the result of an objective or independent analysis. ETHENEA makes no express or implied warranty or representation as to the accuracy, completeness, suitability, or marketability of any information provided to the addressee in webinars, podcasts or newsletters. The addressee acknowledges that our products and concepts may be intended for different categories of investors. The criteria are based exclusively on the currently valid sales prospectus. This marketing communication is not intended for a specific group of addressees. Each addressee must therefore inform themselves individually and under their own responsibility about the relevant provisions of the currently valid sales documents, on the basis of which the purchase of shares is exclusively based. Neither the content provided nor our marketing communications constitute binding promises or guarantees of future results. No advisory relationship is established either by reading or listening to the content. All contents are for information purposes only and cannot replace professional and individual investment advice. The addressee has requested the newsletter, has registered for a webinar or podcast, or uses other digital marketing media on their own initiative and at their own risk. The addressee and participant accept that digital marketing formats are technically produced and made available to the participant by an external information provider that has no relationship with ETHENEA. Access to and participation in digital marketing formats takes place via internet-based infrastructures. ETHENEA accepts no liability for any interruptions, cancellations, disruptions, suspensions, non-fulfilment, or delays related to the provision of the digital marketing formats. The participant acknowledges and accepts that when participating in digital marketing formats, personal data can be viewed, recorded, and transmitted by the information provider. ETHENEA is not liable for any breaches of data protection obligations by the information provider. Digital marketing formats may only be accessed and visited in countries in which their distribution and access is permitted by law. For detailed information on the opportunities and risks associated with our products, please refer to the current sales prospectus. The statutory sales documents (sales prospectus, key information documents (PRIIPs-KIDs), semi-annual and annual reports), which provide detailed information on the purchase of units and the associated risks, form the sole authoritative and binding basis for the purchase of units. The aforementioned sales documents in German (as well as in unofficial translations in other languages) can be found at www.ethenea.com and are available free of charge from the investment company ETHENEA Independent Investors S.A. and the custodian bank, as well as from the respective national paying or information agents and from the representative in Switzerland. The paying or information agents for the funds Ethna-AKTIV, Ethna-DEFENSIV and Ethna-DYNAMISCH are the following: Austria, Belgium, Germany, Liechtenstein, Luxembourg: DZ PRIVATBANK S.A., 4, rue Thomas Edison, L-1445 Strassen, Luxembourg; France: CACEIS Bank France, 1-3 place Valhubert, F-75013 Paris; Italy: State Street Bank International – Succursale Italia, Via Ferrante Aporti, 10, IT-20125 Milano; Société Génerale Securities Services, Via Benigno Crespi, 19/A - MAC 2, IT-20123 Milano; Banca Sella Holding S.p.A., Piazza Gaudenzio Sella 1, IT-13900 Biella; Allfunds Bank S.A.U – Succursale di Milano, Via Bocchetto 6, IT-20123 Milano; Spain: ALLFUNDS BANK, S.A., C/ Estafeta, 6 (la Moraleja), Edificio 3 – Complejo Plaza de la Fuente, ES-28109 Alcobendas (Madrid); Switzerland: Representative: IPConcept (Schweiz) AG, Münsterhof 12, Postfach, CH-8022 Zürich; Paying Agent: DZ PRIVATBANK (Schweiz) AG, Münsterhof 12, CH-8022 Zürich. The paying or information agents for HESPER FUND, SICAV - Global Solutions are the following: Austria, Belgium, France, Germany, Luxembourg: DZ PRIVATBANK S.A., 4, rue Thomas Edison, L-1445 Strassen, Luxembourg; Italy: Allfunds Bank S.A.U – Succursale di Milano, Via Bocchetto 6, IT-20123 Milano; Switzerland: Representative: IPConcept (Schweiz) AG, Münsterhof 12, Postfach, CH-8022 Zürich; Paying Agent: DZ PRIVATBANK (Schweiz) AG, Münsterhof 12, CH-8022 Zürich. The investment company may terminate existing distribution agreements with third parties or withdraw distribution licences for strategic or statutory reasons, subject to compliance with any deadlines. Investors can obtain information about their rights from the website www.ethenea.com and from the sales prospectus. The information is available in both German and English, as well as in other languages in individual cases. Explicit reference is made to the detailed risk descriptions in the sales prospectus. 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