Fund Objective

To provide a total return by investing predominantly in euro denominated fixed interest securities.

View on Past Performance

The environment for the European corporate bond market was affected by concerns over the global economic picture and a sharper than expected slowdown in Europe. New issues are coming to the market cheaply, and this has had the effect of widening the yield spreads of existing issues. The Fund was positioned modestly short duration during August. While the portfolio held an underweight position in credit, it was overweight in subordinated insurance sector bonds.The Fund returned slightly behind its benchmark during August, with the largest impact coming from the insurance sector. Holdings in AIG, the troubled insurance company returned well behind the sector. Additionally, the Funds underweight position in the outperforming utilities sector also dented performance.

Fund Details