High interest income with solid credit quality

Would you like to achieve the highest possible returns from bonds – and do so by investing in companies that have strong credit profiles?
Then Bantleon Select Corporate Hybrids and Bantleon Select Corporate Hybrids Screened might be the right choice for you. These mutual funds invest in subordinated bonds of industrial companies with an investment-grade rating. Bantleon Select Corporate Hybrids Screened places an additional focus on sustainability.
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What makes Bantleon Select Corporate Hybrids
and Bantleon Select Corporate Hybrids Screened stand out?

Increase in total returns

Global bond funds focusing on subordinated bonds (excluding financials). Investment objective: increase in total returns while maintaining high issuer credit quality.

High yields

Corporate subordinated bonds, also known as corporate hybrids, currently offer significantly higher yields than regular corporate bonds – with the same issuer credit rating – and similarly high yield levels as high-yield bonds – but with a significantly better issuer credit rating.

Proven investment process

The funds invest based on a fundamental top-down/bottom-up selection process that has proven itself for more than ten years. Bantleon Select Corporate Hybrids Screened integrates additional exclusion criteria and takes into account principal adverse impact indicators to meet stronger sustainability preferences.

Focus on good credit ratings

The issuer rating is always investment grade. Non-investment grade bonds are limited to a maximum of 35% of the fund’s volume.

Risks of investing in subordinated corporate bonds (corporate hybrids)
 

Corporate hybrids are subordinated bonds issued by companies. Subordination means that in the event of insolvency, the issuer would first repay its senior liabilities, reducing the likelihood of repayment for holders of the subordinated debt in such circumstances. Corporate hybrids typically have a long maturity until final redemption (or no maturity limitation) and include a call option (i.e., a series of call dates on which the issuer can redeem the bond at specified prices), which increases reinvestment risk. This risk refers to the possibility that the future cash flows of a bond have to be reinvested at a lower interest rate. In a company’s capital structure, corporate hybrids rank behind senior bonds, placing them between debt and equity. In addition to the typical risk factors of bonds, corporate hybrids are also characterised by risks such as the deferral of interest payments, stock market volatility and illiquidity. Some additional risk sources associated with corporate hybrids are set out in the following: Coupon default: Coupon payments on some hybrid securities are entirely discretionary and may be cancelled by the issuer at any time, for any reason, for any length of time. The cancellation of coupon payments on such bonds does not constitute an event of default. Depending on the terms of the bond issued, cancelled payments may or may not accrue (i.e., be written off). Extension Risk: Some hybrid securities are issued as perpetual instruments. Perpetual instruments are not necessarily be called at the call date. The investor may not get back the principle amount if it is expected to be called at the call date or any date.

Legal Notice

This marketing communication is an advertisement. It shall neither be seen as an investment advice nor a recommendation or request for a purchase or sale of a product. The given information can and should not replace an individually coordinated consultation by persons qualified for this purpose. All statements are based on the information currently available to Bantleon and can be changed without any notification. The full details of the mutual funds are described in the respective prospectuses, the key information document (PRIIP-KID) and the semi-annual and annual reports. These documents are the only binding basis for a purchase of fund shares. They are available free of charge on www.bantleon.com or can be ordered in printed form from Bantleon Invest Kapitalverwaltungsgesellschaft mbH, An der Börse 7, 30159 Hannover (Fund Management Company in Germany) or Bantleon GmbH, An der Börse 7, 30159 Hanover, from Erste Bank der österreichischen Sparkassen AG, Am Belvedere 1, 1100 Vienna (Contact and Information Agent in Austria), LLB Swiss Investment AG, Claridenstrasse 20, 8002 Zurich (Representative in Switzerland) or UBS Switzerland AG, Bahnhofstrasse 45, 8001 Zurich (Paying Agent in Switzerland). Performance calculations are based on the daily fund share prices and the reinvestment of income (BVI method). All costs within the fund are taken into consideration, expect the subscription fee. Additional fees, commissions and other costs can be charged at the time of buying. These costs are not taken into account in the calculations presented here and can have a negative impact on performance. Past performance is not indicative of future results. The issued shares of the mutual funds are only allowed to be offered or sold in legal jurisdictions where such an offer or sale is permitted. In particular, the shares cannot be offered or sold within the United States of America nor to or on behalf of US citizens or persons living in the United States of America or anyone qualifying as a US person according to the applicable regulations in the United States of America. This document and its content are not allowed to be distributed within the USA. The distribution and publication of this document as well as the offer and sale of shares may also be subject to restrictions in other legal jurisdictions. The information herein has been compiled with the utmost care and attention. However, no responsibility is taken for the correctness and completeness of this information. Any liability for possible losses directly or indirectly linked to this information is excluded. If in this publication the term »Bantleon« is used without any further specification, it refers to Bantleon AG, domiciled in Zurich (Switzerland), and all its associated companies, in particular subsidiaries (also referred to as the »Bantleon Group«). This is a translation of the German disclaimer. The German version shall be binding for the interpretation of this advertisement.

 

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