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 gain of 2.68% (ISIN IE000AKHLQ11) over the past 12 months, the performance of our “eNova Active Core EUR Ultra Short Term” (Active Core)—after fees—was 1 bp above an investment in the Euro Short-Term Rate (ESTR) and 22 bps above our reference index (iBoxx EUR Germany 0–1 Total Return Index). Because Active Core is also used as an alternative for short-term cash investments, portfolio management aims to balance performance with the lowest and briefest possible drawdowns and low volatility. In the last 12 months there were only 9 trading days with price declines; over the same period the reference index saw declines on 27 days. As a result, Active Core’s average 30-day volatility over the past year was 0.10%. The reference index, with similar performance, recorded more than double the volatility at 0.23%.
Market Environment:
In the month just ended, activity and the number of auctions in the EUR money market thinned due to the holiday season. Once again, the action was at the long end of the yield curve. The combination of stubborn inflation together with high government deficits and rising public debt is pushing term premia higher and thus nominal and real yields. The situation is intensifying especially in the UK, where 30-year gilts reached 5.63%, a level last seen in May 1998. France also came under growing pressure toward month-end after Prime Minister François Bayrou announced he would seek a vote of confidence in parliament on 8 September.
The U.S. Federal Reserve—under constant political fire—presented an unusually disjointed picture at its latest meeting. For the first time in 32 years, two governors, Waller and Bowman, voted against the rate decision. Both had favored a 25 bp rate cut rather than leaving policy rates unchanged. Coupled with Donald Trump’s repeated attacks on the competence of Fed Chair Powell and the dismissal of Fed Governor Lisa Cook by the U.S. president, the Fed increasingly risks losing its independence and, with it, confidence in U.S. institutions. Against this backdrop, there is a growing tendency for U.S. term premia to continue their current uptrend and test the highs of the past 20 years.
The Portfolio:
The hawkish tone from the ECB meeting at the end of July caused money-market yields to edge up again at the beginning of the month before the curve flattened around ~1.95% by mid-month. Based on developments in recent weeks, we made two adjustments to our portfolio positioning. Now that markets are again pricing a significantly higher probability of unchanged ECB policy rates, we view the risk/reward in the EUR money market at current levels as attractive. We therefore increased duration slightly from 0.32 to 0.39. The more material change, however, was the complete exit from our French exposure today. Even though we do not expect an escalation given the tense situation, we consider the current spreads on French bills unattractive in light of the negative news flow expected in the coming weeks. Whether French bills re-enter the portfolio will depend heavily on how events develop in the weeks ahead.
restimated.