Description
The fund invests in a portfolio of short-term bonds with an average remaining maturity of less than one year. The aim is to achieve an attractive and stable excess return compared to the money market benchmark ESTR.
The portfolio is implemented through actively managed ETFs, ensuring high diversification, liquidity, and daily tradability. Security selection is based on a rules-based process that considers both creditworthiness and maturity structure.
A particular focus is on high transparency, cost efficiency and the active management of interest rate risks.
Fund Manager
Wilhelm Wildschütz is the founder and managing director of Active Core Asset Management GmbH. He has extensive experience in institutional asset management with a focus on bond strategies.
Before founding Active Core, he worked as a portfolio manager at a renowned private bank, where he was particularly responsible for liquid interest rate strategies and the implementation of regulatory-optimized mandates.
His investment approach is characterized by transparency, efficiency and a deep understanding of market-rate asset classes.
Fund data
Fondsmanager | Wilhelm Wildschütz |
|---|---|
Sales countries | GE, AT, IE |
Jurisdiction | UCITS / ICAV |
ESG Status | Article 8 SFDR with sustainability promise |
WKN | A401A8 |
ISIN | IE000AKHLQ11 |
Bloomberg Ticker | E1AC ID |
Fund initiation | 08.04.2024 |
Date of initial price calculation | 10.05.2024 |
Initial offering price | 100,03 EUR |
Year end | 31. Dec. |
Distribution policy | accumulating |
Minimum investment | none |
Fondswährung | EUR |
price calculation | daily |
Custodian | J.P. Morgan SE Dublin Branch |
Custodian | HAL Fund Services Ireland Limited |
TER (capped) | 0,12% p.a. |
Fund AUM | 221.210.569 EUR |
Monthly market commentary
Fund Performance:
With a value increase of 2.14% (ED share class, ISIN IE000AKHLQ11) over the last 12 months, the performance of our "eNova Active Core EUR Ultra Short Term" (eNOVA Active Core), net of costs, stands 18 bps above the performance of our benchmark index (iBoxx EUR Germany 0-1 Total Return Index). As the eNOVA Active Core also serves as an alternative for short-term liquidity investment, portfolio management is known for striving for a balance between performance, the smallest and shortest possible drawdowns, and low volatility.
Over the last 12 months, there were price declines on only 8 trading days, while the benchmark index showed declines on 21 days during the same period. Consequently, the eNOVA Active Core exhibited an average 30-day volatility of 0.08% over the last year. The benchmark index, while achieving similar performance, recorded a volatility of 0.19%—more than twice as high—over the same period.
The Market Environment:
At the beginning of the month, ECB Executive Board member Isabel Schnabel set the tone for the EUR money market. Her comment that the ECB's next move could more likely be a rate hike triggered a significant market correction. Remaining expectations for rate cuts were subsequently priced out, and yields on bills with maturities up to 12 months rose by approximately 10 bps.
Schnabel pointed to developments such as high food prices and persistent inflation in services, primarily driven by higher wages. She noted that inflation risks remain tilted to the upside. However, at the end of December, Schnabel emphasized that she does not expect rate hikes in the foreseeable future and that interest levels will remain stable for a longer period. Accordingly, ESTR forwards are pricing in a roughly 20% probability of a rate hike by the end of 2026, even across the turn of the year.
Regarding the Year-End:
Unlike in recent years, the turn of the year in the EUR money market was completely relaxed. Repo rates and ESTR spreads traded with almost no visible changes at the year-end (Ultimo). There was no shortage of collateral, suggesting a very sufficient market supply of bills from high to top-quality issuers. Consequently, turnover in the EUR money market remained very subdued at year-end, which also applied to the first trading days of the New Year. In contrast, global bond issuances recorded their busiest start to a year ever, with a record issuance volume of $245 billion in the first seven days.
The Portfolio:
Yield & Rating: Since repo rates and ESTR spreads traded with little change, the portfolio's attractive average ESTR spread remained intact over the year-end. With a spread of +6 bps and an average rating of AAA, the portfolio continues to show an attractive average yield of 1.98%.
Country Allocation: We made few changes to our country allocation over the past month; thus, France remains excluded. We significantly reduced our holdings of Dutch bills and shifted into EU issuances with similarly short maturities. A yield pickup of around 5 bps made this temporary shift in country allocation worthwhile for us.