- Account Manager
Switzerland, Intermediary
ChangeThis is a marketing communication. Please refer to the Fund Prospectus and KID and / or offering documents before making any final investment decisions. Please refer to the risks section at the bottom of this page.
Corporate bonds: an active approach is key
In this new economic era, we believe an active, nimble and liquid approach should position investors to better navigate increased volatility and take advantage of market dislocations as they arise.
Why invest?
-
Why Euro corporate bonds?
-
Why Wellington?
-
The Fund’s role in your client’s portfolio
Why Euro corporate bonds?
Attractive return potential
Potential to provide stable income and capital appreciation through diversified exposure to corporate bonds. Typically offers less volatility than higher-yielding credit and equities.
A deep market offering diversification and liquidity
The Euro investment grade corporate bond market has more than doubled in size in the last decade1, resulting in more opportunities across issuers, sectors and countries. This can offer investors diversification and daily liquidity.
Market inefficiency creates opportunity
In our view, credit risk is often mispriced, driven by a combination of fundamental, technical and ESG factors, presenting potentially attractive opportunities for active managers to generate additional returns relative to the broader market.
Why Wellington?
Local expertise for local markets
In our view, a Europe-based investment team with a focus on local markets is critical in understanding potential macroeconomic and political risks, anticipating changes in the market cycle, and identifying opportunities from both a top-down and bottom-up perspective.
Differentiated philosophy and process
An established and differentiated investment process, combining bottom-up research with a top-down management of credit exposure throughout the cycle.
Strong ESG credentials
A deliberate and research-driven approach to ESG and climate, which includes company engagement, a net-zero objective, and actively avoiding issuers with excessive ESG risks.2
The Fund’s role in your client’s portfolio
Higher total return potential relative to government bonds.
Diversification to equities and government bonds.
Less credit risk potential given primarily investment grade credit ratings.
Lower currency hedging costs for Euro-based investors.
The fund in 60 seconds
The Wellington Euro Credit ESG Fund seeks long-term total returns in excess of the Bloomberg Euro Aggregate Corporate Index. The Fund is actively managed and seeks exposure to a diversified portfolio of primarily Euro-denominated corporate debt instruments while integrating environmental, social and governance (ESG) characteristics into the investment framework.
Investment example
Global Auto Parts
A global auto parts company with a strong European presence, deriving the majority of its revenue from European customers.
Multi-national utility company
A multi-national electricity and gas utility company at the forefront of the energy transition, primarily focused on transmission and distribution of energy.
other fixed income funds
Wellington Euro High Yield Bond Fund
Wellington Global Impact Bond Fund
Contact
- Relationship Analyst
1Barclays Live; Bloomberg Euro Aggregate Corporate Index, as at 30 April 2022. | 2The portfolio does not have a sustainable investment objective. While the evaluation of Sustainability Risks through the analysis of ESG factors is part of the investment process, it may not necessarily result in the exclusion of a security. Please refer to the sustainability related disclosures for information on the commitments of the portfolio: www.wellington.com/en/legal/sfdr.
Consider the risks
Investors should consider the risks that may impact their capital, before investing. The value of your investment may fluctuate from the time of the original investment. Please refer to the risks section enclosed. A decision to invest should take account of all the characteristics and objectives described in the Fund offering documents.
Investment risks
BELOW INVESTMENT GRADE: Lower-rated or unrated securities may have a significantly greater risk of default than investment-grade securities, can be more volatile, less liquid, and involve higher transaction costs | CAPITAL: Investment markets are subject to economic, regulatory, market sentiment and political risks. All investors should consider the risks that may impact their capital, before investing. The value of your investment may become worth more or less than at the time of the original investment. The Fund may experience a high volatility from time to time. | CONCENTRATION: Concentration of investments within securities, sectors or industries, or geographical regions may impact performance. | CREDIT: The value of a bond may decline, or the issuer/guarantor may fail to meet payment obligations. Typically lower-rated bonds carry a greater degree of credit risk than higher-rated bonds. | CURRENCY: The value of the Fund may be affected by changes in currency exchange rates. Unhedged currency risk may subject the Fund to significant volatility. | EMERGING MARKETS: Emerging markets may be subject to custodial and political risks, and volatility. Investment in foreign currency entails exchange risks. | HEDGING: Any hedging strategy using derivatives may not achieve a perfect hedge. | INTEREST RATES: The value of bonds tends to decline as interest rates rise. The change in value is greater for longer-term than shorter-term bonds. | LEVERAGE: The use of leverage can provide more market exposure than the money paid or deposited when the transaction is entered into. Losses may therefore exceed the original amount invested. | MANAGER: Investment performance depends on the investment management team and their investment strategies. If the strategies do not perform as expected, if opportunities to implement them do not arise, or if the team does not implement its investment strategies successfully; then a fund may underperform or experience losses. | SUSTAINABILITY: A sustainability risk is an environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of an investment.
PLEASE REFER TO THE FUND PROSPECTUS AND KIID/KID FOR A FULL LIST OF RISK FACTORS AND PRE-INVESTMENT DISCLOSURES.