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Moorea Fund - Sustainable Floating Rate Income

The fund seeks to deliver income and capital growth through a dynamic exposure to floating rate debt instruments denominated in Euro. The fund will principally invest in Investment Grade bonds issued by corporate, governments, or public institutions denominated in Euro. The average modified duration of the portfolio will be maintained below 1.

A defensive profile combining issuer quality and low rate sensitivity.

Key features

A fixed income fund tailored for rising rates
Moorea Fund – Sustainable Floating Rate Income is designed to take advantage of rising interest rates by investing in:
• Floating Rates debt instruments (FRN): with quasi no sensitivity to interest rates and income indexed to short term rates, FRN offer an optimised profile to a rising rate environment;
• Short duration High Yield bonds: by focusing on short duration issues, the portfolio manager aims to reduce the volatility implied by the asset class;
• Subordinated bonds and structured products, on an ancillary basis: to enhance the fund performance and seize opportunity in those markets.

Rigorous risk monitoring
In order to minimize the risk, the portfolio managers will apply a stringent risk control process by investing minimum 50% of its assets in Investment Grade rated securities, limiting exposure to specific credit strategies and maintaining a duration below 1. 

Prospectus
Prospectus
Annual report
Annual report
Semi-annual report
Semi-annual report
Semi-annual report CH (FR)
Semi-annual report CH (FR)
Share class
CategoryFixed Income
Risk profile3
Recommended investment period3 years
Isin CodeLU1115951946
Investor profileRetail
CurrencyEUR
Dividend policyAccumulation
Net Asset Value frequencyDaily
Initial Net Asset Value250 EUR
Net Asset Value date04/10/2022
Net Asset Value240.48
KIID
Monthly report
Tax publication
CategoryFixed Income
Risk profile3
Recommended investment period3 years
Isin CodeLU1115981182
Investor profileRetail
CurrencyEUR
Dividend policyDistribution
Net Asset Value frequencyDaily
Initial Net Asset Value250 EUR
Net Asset Value date04/10/2022
Net Asset Value238.34
KIID
Tax publication
CategoryFixed Income
Risk profile3
Recommended investment period3 years
Isin CodeLU1115981935
Investor profileInstitutional
CurrencyEUR
Dividend policyAccumulation
Net Asset Value frequencyDaily
Initial Net Asset Value250 EUR
Net Asset Value date04/10/2022
Net Asset Value244.18
KIID
Monthly report
Tax publication
CategoryFixed Income
Risk profile3
Recommended investment period3 years
Isin CodeLU1664187637
Investor profileMandate
CurrencyEUR
Dividend policyAccumulation
Net Asset Value frequencyDaily
Initial Net Asset Value250 EUR
Net Asset Value date04/10/2022
Net Asset Value243.16
KIID
Tax publication
CategoryFixed Income
Risk profile3
Recommended investment period3 years
Isin CodeLU1664187710
Investor profileMandate
CurrencyEUR
Dividend policyDistribution
Net Asset Value frequencyDaily
Initial Net Asset Value250 EUR
Net Asset Value date04/10/2022
Net Asset Value238.62
KIID
Tax publication
CategoryFixed Income
Risk profile3
Recommended investment period3 years
Isin CodeLU1693821826
Investor profileRetail
CurrencyUSD
Dividend policyAccumulation
Net Asset Value frequencyDaily
Initial Net Asset Value250 USD
Net Asset Value date03/11/2020
Net Asset Value266.14
KIID
Tax publication
CategoryFixed Income
Risk profile3
Recommended investment period3 years
Isin CodeLU1693822048
Investor profileMandate
CurrencyUSD
Dividend policyAccumulation
Net Asset Value frequencyDaily
Initial Net Asset Value250 USD
Net Asset Value date04/10/2022
Net Asset Value243.47
KIID

Focus on Floating Rate Bonds (FRN)

A floating-rate note, also known as an FRN or a «floater» is a debt instrument with an interest rate that may vary depending on a predefined benchmark.

Floating-rate notes are issued by both government entities and private corporations, and typically have maturities ranging from two to five years. Interest rates can reset at a variety of frequencies ranging from daily to annually, though monthly and quarterly intervals are the most common.

The main feature of FRN, compared to traditional bonds, is that interest rate risk is largely removed from the equation. While an owner of a fixed-rate bond may suffer from interest rates rise, floating rate notes will pay superior yields if prevailing rates go up. As a result, they tend to perform better than traditional bonds when interest rates are rising. Investing in floating rate notes is appropriate when rates are low, or have fallen quickly in a short time period, and are expected to rise.

Performances

Past performance should not be seen as an indicator of future performance.

Associated risks

  • Counterparty Risk: Refers to the risk of counterparty default resulting in non-payment. The fund may be exposed to counterparty risk through the use of Over The Counter (OTC) derivatives entered into by mutual agreement with a credit institution.
  • Liquidity Risk: Refers to the possibility that the fund may loose money or be prevented from earning capital gains if it cannot sell a security at the time and price that is most beneficial to the fund and may be unable to raise cash to meet redemption requests.
  • Credit Risk: Refers to the likelihood of the fund lose money if an issuer is unable to meet its financial obligations, such as the payment of principal and/or interest on an instrument.
  • Operational Risk: It refers to a failure or delay in the system, processes and controls of the fund or its service providers which could lead to losses for the fund.
  • Market Risk: Refers to the possibility for an investor to experience losses due to the overall performance of the financial markets.
  • Concentration Risk: Refers to the risk of significant losses if the fund holds a large position in a particular investment that declines in value or is otherwise adversely affected, including default of the issuer.

Before investing, they must be aware that certain markets may be subject to rapid fluctuations and are speculative or lacking in liquidity. Accordingly, certain assets or categories of assets listed in the present document may not be appropriate for investors. In certain cases, investments may even bear an indeterminate high risk of loss that exceeds the initial investment made. Investors are therefore urged to seek the advice of their financial advisor or intermediary in order to assess the particular nature of an investment and the risks involved and its compatibility with their individual investment profile and objectives.