Value is more than a number …
Learn More
The Fixed Interest Fund is an actively managed portfolio invested mainly in government, government agency and covered bonds. The bulk of exposure is in Euro, although the Fund can take advantage of non Euro fixed income investments, up to a maximum exposure of 40% of fund assets. The Fund invests in the highest quality investments with a minimum credit rating of “A” at time of purchase. Maximum exposure to a single Government with a credit rating below “AA” is 15% of fund assets. The benchmark is the Bank of America Merrill Lynch EMU Government 5yr+ index. Duration of the fund is kept within +/- 2 years of this benchmark.
All investments are taken after careful analysis of all relevant metrics and on a long term view. Bond investments offer investors the potential for regular income, capital preservation and diversification from other types of investments. Returns are likely to be less volatile than equity returns and offer investors the potential for good risk-adjusted returns over time.
The investment objective of the Fixed Interest Fund is to generate a total return above the return of the Euro Governments debt on a rolling 3 year basis – this is measured by the Bank of America Merrill Lynch EMU Government 5yr+ index return.
| 1 month | YTD | 1 Year | 3 Year p.a. | 5 Year p.a. | 10 Year p.a. | |
| Fund | 4.9% | -1.2% | -1.2% | 0.3% | 1.9% | 3.7% |
| Benchmark | 5.3% | 3.9% | 3.9% | 2.9% | 3.9% | 5.2% |
| 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |
| Fund | -1.5% | 0.0% | 9.1% | 5.5% | -3.3% | -1.2% |
| Benchmark | -1.8% | 0.4% | 10.4% | 4.0% | 0.9% | 3.9% |
| Duration (Yrs to Maturity) | Fund | Benchmark |
| 0-5 | 27.9% | 10.7% |
| 5-10 | 54.2% | 59.0% |
| 10-15 | 13.4% | 21.1% |
| 15-30 | 4.5% | 9.2% |
| Credit Rating Weighting | Fund | Benchmark |
| AAA | 40.8% | 58.6% |
| AA | 23.1% | 17.1% |
| A | 22.6% | 22.4% |
| BBB | 10.9% | 1.8% |
| CC | 2.6% | 0.0% |
| C | 0.1% | 0.0% |
| % OF FUND | |
| FRANCE | 15.5% |
| ITALY | 14.1% |
| SPAIN | 13.9% |
| GERMANY | 5.9% |
| AUSTRIA | 5.7% |
| IRELAND | 12.9% |
| BELGIUM | 4.3% |
| NETHERLANDS | 6.4% |
| PORTUGAL | 1.1% |
| GREECE | 2.6% |
| FINLAND | 0.1% |
| SLOVENIA | 4.1% |
| SLOVAKIA | 4.5% |
| SNAT | 5.4% |
| POLAND | 1.9% |
| CASH | 1.6% |
| Assets | Fund Weight |
| GOVERNMENT | 52.3% |
| COVERED | 19.0% |
| GOVERNMENT AGENCY | 17.7% |
| SUPRANATIONAL | 5.3% |
| GOVERNMENT GUARANTEE | 2.7% |
| LOCAL GOVERNMENT GUARANTEE | 1.3% |
| CASH | 1.6% |
David Ryan, CFA joined Setanta in 2003. He has 13 years experience in the asset management industry, covering equity, bond and cash mandates, most recently as a Fixed Interest manager at Swiss Re Asset Management. David’s sector responsibilities include all Fixed Interest & Cash mandates and forms part of our 3-person multi-asset team. He has a BBS Hons. (Finance) from Dublin City University and is a CFA Charterholder.
Gary Edge joined Setanta in 2000. Gary has 11 years industry experience, being with Setanta for 9 of those. Since the end of 2007 he has worked as a trader on our front desk. This role focuses on Fixed Income, money market and FX trading. Recently he has been given responsibility for managing a number of our reinsurance Fixed Income portfolios under the guidance of David Ryan. Gary has a BBS from Dublin City University. He is also a candidate of the CFA program.
Performance Source: Setanta Asset Management Limited. Benchmark: Bank of America Merrill Lynch EMU Government 5yr+ index. The Fund returns stated (in Euro) are based on the movements in the unit prices of a representative account, based on mid to mid prices, and are gross of management fees. The performance will be reduced by the impact of management fees paid, the amount of which varies.
The Fixed Interest Fund is managed by Setanta Asset Management Limited and is a representative account of the Fixed Interest strategy. The Fund is currently available in Ireland via a unit-linked offering of Canada Life Assurance (Ireland) Limited. For this life assurance product, investors should refer to the relevant policy conditions. The strategy is also available on a segregated basis.
WARNING: Past performance is not a reliable indicator of future results. The price of units and the income from them may go down as well as up and investors may not get back the amount invested. The return may increase or decrease as a result of currency fluctuations. Forecasts are not a reliable indicator of future performance.
