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Candriam Bonds Euro High Yield

Marketing Communication. Please refer to the prospectus of the fund and to the key investor information document before making any investment decision. The documents can be obtained free of charge.

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Philippe Noyard
Global Head of Credit / Deputy Global Head of Fixed income
36 Years of experience
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Nicolas Jullien
Head of High Yield & Credit Arbitrage / Deputy Global Head of Credit
15 Years of experience
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Thomas Joret
Senior Fund Manager
8 Years of experience
  • ISIN
ISIN
LU0144746509
NAV - 16 JAN 2023
EUR 1 291,54
AUM - 16 JAN 2023
EUR 2 223 260 603,86
SFDR Category 
Article 8
Morningstar 
31 DEC 2022
Category
EAA Fund EUR High Yield Bond
Morningstar Rating

Important information

© 2022 Morningstar. All Rights Reserved. The information contained here: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For more detailed information about the Morningstar Rating, including its methodology, please go to: https://s21.q4cdn.com/198919461/files/doc_downloads/othe_disclosure_materials/MorningstarRatingforFunds.pdf

About this fund

Candriam Bonds Euro High Yield (hereafter "the fund"), a sub-fund of the Candriam Bonds sicav, aims to use discretionary management to benefit from the performance of the market in high yield bonds denominated in EUR and issued by private sector issuers, and to outperform the benchmark. These high yield securities are generally poorly rated and exposed to higher credit risk and liquidity risk than more highly rated securities; they may be subject to greater market value fluctuations and lower liquidity. The fund may be appropriate for investors who wish to achieve this objective over a medium investment holding period and who are aware of, understand and are able to bear the specific risks of the fund. The fund promotes, among other characteristics, environmental and/or social characteristics but does not have sustainable investment as its objective. The investment horizon is 3 years. The fund is actively managed and the investment process implies referring to a benchmark index. For further information on the risks or the benchmark and its use, please consult the fund’s key information document (KID).


Principal assets traded:
Bonds and other debt securities denominated in euros with an issuer or issue rating above B-/B3 (or equivalent) by one of the rating agencies (i.e. issuers or issues considered to be high risk).
Derivative products of issuers of the same quality.


Investment strategy:
The fund seeks to achieve capital growth by investing in the principal assets traded and to outperform the benchmark.
The management team makes discretionary investment choices based on economic/financial analyses.
The fund promotes, among other characteristics, environmental and/or social characteristics but does not have sustainable investment as its objective. The analysis of ESG aspects (environment, social, governance) is included in the selection, analysis and global evaluation of companies. The Fund also aims to exclude investments in companies which do not respect certain recognised international standards and principles, or which are significantly exposed to certain controversial activities. Under certain conditions, the analysis and selection process may also be accompanied by active involvement based on dialogue with the companies. For more information, please see the management company's website and/or the prospectus.
The fund may make use of derivative products for both investment and hedging purposes (to protect against future unfavourable financial events).

Benchmark:ICE BofA BB-B Euro Non-Financial High Yield Constrained Index (Total Return).
The fund is managed actively and the investment approach implies a reference to a benchmark (the index).
Benchmark definition:
The index measures the performance of below investment grade euro-denominated corporate bonds outside the financial sector issued on domestic markets in the euro zone or euro bonds, and with issuer exposure capped at 3%.
Use of the benchmark:
- as an investment universe. In general, the issuers of financial instruments contained in the fund portfolio are mostly contained in the index. However, investments outside this index are authorised,
- in determining risk levels/parameters,
- for performance comparison purposes,
- to calculate the performance fee for some share classes.
Divergence of portfolio composition from the benchmark:
As the fund is managed actively, it does not aim to invest in each component of the index nor to invest in the same proportions as the components of the index.
In normal market conditions, the expected tracking error of the fund will be moderate to large, namely between 0.75% and 3%.
This measure is an estimation of the divergence of the fund’s performance compared to the performance of the benchmark. The greater the tracking error, the greater the deviations from the benchmark index. The actual tracking error depends in particular on market conditions (volatility and correlations between financial instruments) and may therefore differ from the expected tracking error.


NAV & Performances

Historical values graph

 

 

Candriam Bonds Euro High Yield I - Cap - EUR

This graph represents the synthetic net asset value of the fund. It is provided for information and illustrative purposes only. The synthetic net asset value is obtained by a recalculation of the values of the fund’s assets by leveling out the effect of securities transactions (split, coupon, dividend distribution...) in order to reflect the real performance of the fund share or unit. Data may be rounded for convenience. Data expressed in a currency other than that of the investor's country of residence is subject to exchange rate fluctuations, with a positive or negative impact. Gross performance may be impacted by commissions, fees and other expenses.

Performance

Past performance is not a reliable indicator of future performances. Markets could develop very differently in the future.
It can help you assess how the fund has been managed in the past.

Actuarial Yield

  1 year 3 years 5 years 10 years
Share class -9.48 % -1.24 % 0.80 % 3.73 %
Benchmark -11.39 % -2.49 % -0.23 % 2.83 %
Difference 1.91 % 1.25 % 1.04 % 0.90 %

Annual return over the last years (%)

This chart shows the fund’s performance as the percentage loss or gain per year over the last 10 years. It can help you to assess how the fund has been managed in the past and compare it to its benchmark.
The index composition may change over time. The performance reported may therefore differ from the performance of the relevant index before its change. Performance is shown after deduction of ongoing charges. Any entry and exit charges are excluded from the calculation. Performances expressed in a currency other than that of the investor's country of residence are subject to exchange rate fluctuations, with a negative or positive impact on gains. If the present document refers to a specific tax treatment, such information depends on the individual situation of each investor and may change. If no performance is given for a year following the year of creation, this will be because there is not enough data to provide investors with a reliable indication of this performance. "

  2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Share class 10,14 % 6,40 % 3,44 % 8,02 % 5,86 % -2,45 % 10,77 % 3,91 % 2,39 % -9,48 %
Benchmark 8,46 % 5,79 % -0,05 % 10,18 % 5,86 % -3,26 % 10,21 % 1,71 % 2,86 % -11,39 %
Difference 1,69 % 0,61 % 3,50 % -2,16 % 0,00 % 0,81 % 0,57 % 2,20 % -0,47 % 1,91 %

Excluding fees/taxes: taxes are not part of the performance calculation

Additional information

The returns listed above are provided on the basis of the Net Asset Value (NAV), net of commissions and reinvested income. All management fees and commissions are included in the calculation of past performance except for any entry and exit charges. Taxes are not included in the calculation of returns. The value or price converted into euros may be reduced or increased depending on fluctuations in the exchange rate. The fund is not a guaranteed investment. The NAVs are net of fees and are provided by the accounting department and the benchmark by the official providers.

Market developments (currency conversion, coupon, split, …) have an influence on the chart. This graph is provided for information purposes only and does not precisely illustrate the evolution of the fund's net assets. Data may be rounded for convenience. Data expressed in a currency other than that of the investor's country of residence is subject to exchange rate fluctuations, with a positive or negative impact. Gross performance may be impacted by commissions, fees and other expenses

Characteristics

Fund Characteristics

Fund name
Candriam Bonds Euro High Yield
Benchmark
ML Euro HY BB-B Non-Fin EUR
SICAV Name
Candriam Bonds
Currency
EUR
Legal Form
Sub-fund of a SICAV under Luxembourg law
Fund type
UCITS
SFDR Category
Article 8
Creation Date
Term of the fund
The fund has no limited term
Domicile Country
Luxembourg
Management Company, having its registered office in Luxembourg
CANDRIAM
Depository Bank
CACEIS Bank, Luxembourg Branch
Transfer Agent
CACEIS Bank, Luxembourg Branch
Recommended investment horizon
3 years
Swing Pricing System
yes
Swing Pricing Description
Swing Pricing is a mechanism by which the net asset value is adjusted upwards (or downwards) if the change in liabilities is positive (or negative) in such a way as to reduce for existing investors the portfolio restructuring costs linked to subscription/ redemption movements in the fund. On valuation days where the difference between the amount of subscriptions and the amount of redemptions of a sub-fund (i.e. net transactions) exceeds a threshold set beforehand by the Board of Directors, the latter shall be entitled to:
- value the net asset value by adding to the assets (in the case of net subscriptions) or deducting from assets (at net redemptions) a fixed percentage of the fees corresponding to market practices and reflecting the fees and/or conditions of liquidity when buying or selling securities; - value the securities portfolio on the basis of bid or ask prices;
- assess the net asset value by setting a level of spreads representative of the relevant market;
- The dilution mechanism must not exceed 2% of the net asset value, except in exceptional circumstances, as in the event of a sharp decrease in liquidity, which would then be detailed for the sub-fund concerned in the annual (semi-) annual report of the SICAV.

Tax, Charges & Fees

Management fees (max)
0.60 %
Subscription
0.00 %
Redemption
0.00 %
Ongoing charges Date
Ongoing charges
0.73 %

Instrument

Name
I - Cap
Benchmark
ML Euro HY BB-B Non-Fin EUR
Currency
EUR
ISIN
LU0144746509
Bloomberg Ticker
DEXHYLI LX Equity
Morningstar Ticker
F0GBR06GO0
First NAV Date
2003-09-05

Orders

NAV Date
D
NAV Calculation Day
D+1
Frequency valuation
daily
Subscription Cut off
D 12:00
Redemption Cut off
D 12:00

The corresponding time zone is the one associated with the fund's domicile.

Risks

Lower riskHigher risk
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
Potentially lower return Potentially higher return
SRI Date
SRI Value
3
Definition
The summary risk indicator ("SRI") is an indicator with a rating ranging from 1 to 7 and corresponds to increasing levels of risk and return. The methodology for calculating this regulatory indicator is available in the KID.
The summary risk indicator ("SRI") is a guide to the level of risk of this product compared to other products.
It shows how likely it is that the product will lose money because of movements in the markets or because we are not able to pay you.
Main Risks

Counterparty Risk: When the fund carry out over-the-counter transactions (i.e. involving instruments not listed on the markets), they are exposed to a risk of default by the counterparty to the transaction.

Credit risk: It constitutes the risk that an issuer or a counterparty default. This risk includes the risk of changes in credit spreads and default risk. The level of credit risk is usually evaluated by using “ratings” representing a comparative assessment of the credit quality (solvency level) of an issuer, issuer or portfolio. “High Yield” investments present the lowest rating levels and therefore a high credit risk.

Derivative risk: Derivatives are investments whose value depends on (or is derived from) the value of an underlying instrument, such as a security, asset, reference rate or index. Derivative strategies often involve leverage, which may exaggerate a loss, potentially causing the Sub-Fund to lose more money than it would have lost had it invested in the underlying instrument. Using derivatives may result in a higher portfolio volatility related to this underlying asset and an increase of the counterparty risk.

ESG Investment Risk: ESG investment risk refers to the risks arising from the inclusion of ESG factors in the management process, such as the exclusion of activities or issuers and the inclusion of sustainability risks in the selection and/or allocation of issuers in the portfolio.

Interest rate risk: A change in interest rates, resulting notably from inflation, may cause a risk of losses and reduce the net asset value of the fund.

Liquidity risk: lt occurs when a portfolio position cannot be sold, liquidated or closed at a limited cost and within a sufficiently short time, which jeopardizing the fund's ability to comply at any time with its obligations to redeem the shares of investors at their request.

Risk of loss of capital: Investors are advised that any capital they invest is not guaranteed and that they may therefore not receive back the full amount invested. They may thus suffer a loss.

Sustainability Risk: The sustainability risk refers to any environmental, social or governance event or condition that could affect the performance and / or the reputation of issuers in the portfolio. It may be issuer specific, in line with their activities and practices, but may also be due to external factors.

Other Risks
Conservation risk Currency risk Delivery risk Emerging market risk Equity Risk Legal risk Operational risk Risk of conflict of interest Volatility risk

Risk and reward indicators 2022-12-30

Fund
Benchmark
Volatility
9.15 %
9.98 %
Tracking error
1.82 %
Sharpe Ratio
-0.09
-0.21
Number of Issues
104
565
Number of Issuers
71
310
Modified Duration to Worst
3.42
3.26
Yield to Worst
5.69
7.07
Average Rating
BB-
BB-
Average Spread
300.22
337.61
Credit Sensitivity
4.31
4.29
Net Investment Grade exposure
13.61 %
1.62 %
Net High Yield exposure
74.12 %
98.22 %

ESG

SFDR Category: Article 8

OUR APPROACH TO SELECTING ENVIRONMENTAL OR SOCIAL INVESTMENTS FOR THE CANDRIAM FUNDS REFERRED TO IN ARTICLE 8 OF THE SFDR*:

The fund’s investment strategy aims to promote environmental or social characteristics, or a combination of these characteristics, provided that the entities in which the investments are made apply good governance practices. To achieve this objective, the management team makes discretionary investment choices based on an economic/financial analysis process and an internal analysis of environmental, social and governance (ESG) criteria, based in part on data provided by external service providers.

a. ESG selection criteria:

The internal analysis of ESG criteria consists in selecting the issuers:
• best positioned to meet the challenges of sustainable development;
• that comply with the principles of the United Nations Global Compact (i.e. human rights, labour law, the environment, anti-corruption), and which are therefore less exposed to the risks associated with these themes; and
• that are not engaged in controversial activities such as armament (securities of a company whose activity consists of manufacturing, the use or possession of anti-personnel mines, cluster bombs and/or depleted uranium weapons), tobacco, thermal coal;

b. Selection methodology:

The issuers favoured by the management company are subject to a dual analysis:
• Analysis of their activity to assess their alignment with the major challenges of sustainable development. For example, regarding the transition to a circular economy, the management company will consider a company producing recycled steel to be more sustainable than a company producing steel exclusively from iron ore; and
• Analysis of how the company manages players interacting with the company: its employees, its customers, its shareholders, its suppliers and the environment. Here too, the management company will favour companies that adopt the most sustainable practices given their sector. For example, with regard to relations with its clients, the management company will favour pharmaceutical companies with balanced pricing practices and commercial policies. Similarly, with regard to relations with their employees, the management company attaches great importance to the fight against discrimination and compliance with social standards.

c. A team of ESG analysts is responsible for assessing the selection criteria:

ESG analysis and selection are carried out by a dedicated team of ESG analysts within Candriam. This team is made up of specialists whose mission is to analyse the exposure of companies and governments to the risks and opportunities associated with sustainable development. Selection criteria are expected to evolve over time, based on advances in ESG research and changes in company practices.

For more information on the environmental or social characteristics of our investments, as well as the integration of sustainability risks, please refer to Candriam’s transparency policies and codes and SFDR Article 8 fund sustainability information (available on our website: https://www.candriam.com/en/professional/sfdr/) as well as the fund prospectus (available on our website https://www.candriam.com)

* SFDR is the acronym given in Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on the publication of sustainability information in the financial services sector

Documents

  • ISIN
Languages

ESG documents

Shareholder documents

Annual and semi-annual reports

Factsheets and fund comments

Other important information

This is a marketing communication. Please refer to the prospectus of the funds and to the key information document before making any investment decision. This marketing communication does not constitute an offer to buy or sell financial instruments, nor does it represent an investment recommendation or confirm any kind of transaction, except where expressly agreed. Although Candriam selects carefully the data and sources within this document, errors or omissions cannot be excluded a priori. Candriam cannot be held liable for any direct or indirect losses as a result of the use of this document. The intellectual property rights of Candriam must be respected at all times, contents of this document may not be reproduced without prior written approval.
Warning: Past performance of a given financial instrument or index or an investment service or strategy, or simulations of past performance, or forecasts of future performance does not predict future returns. Gross performances may be impacted by commissions, fees and other expenses. Performances expressed in a currency other than that of the investor's country of residence are subject to exchange rate fluctuations, with a negative or positive impact on gains. If the present document refers to a specific tax treatment, such information depends on the individual situation of each investor and may change.
In respect to money market funds, please be aware that an investment in a fund is different from an investment in deposits and that the investment’s principal is capable of fluctuation. The fund does not rely on external support for guaranteeing its liquidity or stabilizing its NAV per unit or share. The risk of loss of the principal is borne by the investor.
Candriam consistently recommends investors to consult via our website https://www.candriam.com the key information document, prospectus, and all other relevant information prior to investing in one of our funds, including the net asset value (“NAV) of the funds. Investor rights and complaints procedure, are accessible on Candriam’s dedicated regulatory webpages https://www.candriam.com/en/professional/legal-information/regulatory-information/. This information is available either in English or in local languages for each country where the fund’s marketing is approved.
According to the applicable laws and regulations, Candriam may decide to terminate the arrangements made for the marketing of a relevant fund at any time.
Information on sustainability-related aspects: the information on sustainability-related aspects contained in this communication are available on Candriam webpage https://www.candriam.com/en/professional/sfdr/. The decision to invest in the promoted product should take into account all the characteristics or objectives of the promoted product as described in its prospectus, or in the information documents which are to be disclosed to investors in accordance with the applicable law.

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