Talking to investors about bonds is much different for me than talking to them about equities. With bonds we talk about risks, and with equities we talk about profits and growth. Finding the right investment is always a balance between risk and reward. However, bond investors don’t only want a return on their money, but also a return of their money. Over the last 10 years, ACATIS IfK Value Renten has achieved great results by picking the right bond investments. With an annualised performance of 7.3%, a volatility of 4.2%, and a default rate of 0.7% over 10 years, the fund is ranked as one of the top funds in its universe. By thorough bottom-up research, the investment team is looking at a large number of quantitative and qualitative factors to find the right bonds and buy them at the right time, often when other investors are stepping out. Going forward risks might increase, and so might the volatility. Having said that, investors that have a little longer investment horizon and those that can withstand some intermediate drawdowns, can still make positive returns. The fund has the freedom to invest in the whole bond universe and is well diversified with 90 to 100 investments. The average rating of the portfolio is BBB-, has a yield of 4.8%, and a duration of 4.4 years. Of course, results of the past are no guarantee for the future - but with a track record like this, ACATIS IfK Value Renten deserves all the credit.
Further information about the fund can be found here.
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Photo: Frits Nieuwenhuijsen