Global bond sector
Bonds Value is an absolute return global bond sector that has little correlation with market value trends and characterised by a very flexible management style. The managers of Base Investments Sicav (Luxembourg-based open-ended company sponsored by Bank of Sempione) can invest in a wide range of bonds without any restrictions on length, sector or geographic allocation, with the only limit of a maximum 15% high yield in the portfolio.
9.76% return since beginning of 2017
After having closed the month of November with a further 0.25% increase, the sector has earned 9.76% since the beginning of the year, as opposed to +3.36% in 2016 and +11.66% in 2015. As its managers state, the duration remains negative even if the upward trend of income in the mid-term is expected to be slow and inconsistent. Experts are ready to take advantage of single emissions that promise a good potential return, particularly on emerging markets.
Fund managers: in EURO they trust
On the currency side, the sector keeps a short position on yen and a long one on sterling, with managers getting more and more convinced that the euro will remain the strongest currency in the mid-term and should, therefore, be favoured above the dollar. It’s important to note that the subscription fees to the sector are at 3% (no expense reimbursement is expected) while running costs paid annually are at 1.52% and commissions on income come up to 15% of the annual increase on the net value of the inventory.