European Currencies High Yield Bond Fund
Share Class :
 
ISIN: LU0360481153
 
 
Overall Morningstar Rating
European Currencies High Yield Bond Fund
ISIN: LU0360481153
Share Class :

European Currencies High Yield Bond Fund

SHARE CLASS :
ISIN: LU0360481153
 
Overall Morningstar Rating
 
 
 
Investment Objective
To generate income and the long term growth of your investment.
Investment Approach
Seeks to provide an attractive rate of return, measured in euro, through investments worldwide primarily in lower rated and unrated fixed income securities issued by governments, agencies and corporations that offer a yield above that generally available on debt securities in the four highest rating categories of S&P or Moody's denominated in European currencies.
 
472.68
Share Class Assets
(MM EUR)
Jul '08
Share Class Launch Date
163
Number of holdings
3.57
Duration (years)
 
 
Pricing & Performance

Past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. All performance data is calculated NAV to NAV, net of fees, and does not take account of commissions and costs incurred on the issue and redemption of units. The sources for all performance and Index data is Morgan Stanley Investment Management. Please click here for additional performance disclosures and important information, which should be reviewed carefully.

The Blended Index performance shown is calculated using the ML European Currency Constrained High Yield Index from inception through 31 March 2009 and the ICE BofA ML European Currency High Yield 3% Constrained Ex-Sub Financials Index thereafter.

This Fund was reconstructed in December 1998. Original inception: May 1997.

As of 31-Mar-2018

As of 24-Apr-2018

As of 31-Mar-2018

As of 24-Apr-2018


Performance of 100 EUR invested
Performance of 100 EUR invested

    
Past performance is not a reliable indicator of future results.
 
 
Average Annual Total Returns As of 31-Mar-2018 As of 31-Mar-2018
1 YR 3 YRS 5 YRS 10 YRS Since Inception
Share Class Z EUR (%) 3.54 4.17 5.89 -- 8.69
ICE BofAML European Currency High Yield 3% Constrained Ex-Sub Financials Index (%) 3.90 4.42 5.64 -- 8.33
1 YR 3 YRS 5 YRS 10 YRS Since Inception
Share Class Z EUR (%) 3.54 4.17 5.89 -- 8.69
ICE BofAML European Currency High Yield 3% Constrained Ex-Sub Financials Index (%) 3.90 4.42 5.64 -- 8.33
2011 2012 2013 2014 2015 2016 2017
Share Class Z EUR (%) -5.49 26.26 10.38 4.47 1.38 9.84 6.36
ICE BofAML European Currency High Yield 3% Constrained Ex-Sub Financials Index (%) -1.17 24.53 8.91 4.62 0.85 10.07 6.22
2014 2015 2016 2017 2018
Share Class Z EUR (%) 11.53 5.60 -0.66 9.89 3.54
ICE BofAML European Currency High Yield 3% Constrained Ex-Sub Financials Index (%) 10.05 5.03 -0.04 9.63 3.90
 
Average Annual Total Returns
As of 31-Mar-2018
TIMEFRAME Share Class Z EUR (%) ICE BofAML European Currency High Yield 3% Constrained Ex-Sub Financials Index (%)
1 Yr 3.54 3.90
3 Yrs 4.17 4.42
5 Yrs 5.89 5.64
10 Yrs -- --
Since Inception 8.69 8.33
As of 31-Mar-2018
TIMEFRAME Share Class Z EUR (%) ICE BofAML European Currency High Yield 3% Constrained Ex-Sub Financials Index (%)
1 Yr 3.54 3.90
3 Yrs 4.17 4.42
5 Yrs 5.89 5.64
10 Yrs -- --
Since Inception 8.69 8.33
TIMEFRAME Share Class Z EUR (%) ICE BofAML European Currency High Yield 3% Constrained Ex-Sub Financials Index (%)
2011 -5.49 -1.17
2012 26.26 24.53
2013 10.38 8.91
2014 4.47 4.62
2015 1.38 0.85
2016 9.84 10.07
2017 6.36 6.22
TIMEFRAME Share Class Z EUR (%) ICE BofAML European Currency High Yield 3% Constrained Ex-Sub Financials Index (%)
2014 11.53 10.05
2015 5.60 5.03
2016 -0.66 -0.04
2017 9.89 9.63
2018 3.54 3.90
Past performance is not a reliable indicator of future results.
 
 
Risk/Return Statistics

TIMEFRAME:
    Share Class Z Index
Alpha (%) -0.25 --
Beta 1.04 1.00
Information ratio -0.21 --
R squared 0.94 1.00
Sharpe ratio 0.89 1.00
Tracking error (%) 1.19 --
Volatility (Standard deviation) (%) 4.95 4.63
Past performance is not a reliable indicator of future results.
 
 
 
Risk and Reward Profile As of 12-Feb-2018
 
 
Lower Risk
High Risk
Potentially
Lower Rewards
Potentially
Higher Rewards
 
The risk and reward category shown is based on historic data.
  • Historic figures are only a guide and may not be a reliable indicator of what may happen in the future.
  • As such this category may change in the future.
  • The higher the category, the greater the potential reward, but also the greater the risk of losing the investment. Category 1 does not indicate a risk free investment.
  • The fund is in this category because it invests in fixed income securities and the fund's simulated and/or realised return has experienced medium rises and falls historically.
  • The fund may be impacted by movements in the exchange rates between the fund's currency and the currencies of the fund's investments.
This rating does not take into account other risk factors which should be considered before investing, these include:
  • The value of bonds are likely to decrease if interest rates rise and vice versa.
  • The value of financial derivative instruments are highly sensitive and may result in losses in excess of the amount invested by the Sub-Fund.
  • Issuers may not be able to repay their debts, if this happens the value of your investment will decrease. This risk is higher where the fund invests in a bond with a lower credit rating.
  • The fund relies on other parties to fulfill certain services, investments or transactions. If these parties become insolvent, it may expose the fund to financial loss.
  • There may be an insufficient number of buyers or sellers which may affect the funds ability to buy or sell securities.
  • Investment in Fixed Income Securities via the China Interbank Bond Market may also entail additional risks, such as counterparty and liquidity risk.
  • Past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. The value of investments and the income from them can go down as well as up and investors may lose all or a substantial portion of his or her investment.
  • The value of the investments and the income from them will vary and there can be no assurance that the Fund will achieve its investment objectives.
  • Investments may be in a variety of currencies and therefore changes in rates of exchange between currencies may cause the value of investments to decrease or increase. Furthermore, the value of investments may be adversely affected by fluctuations in exchange rates between the investor’s reference currency and the base currency of the investments.
The risk and reward category shown is based on historic data.
  • Historic figures are only a guide and may not be a reliable indicator of what may happen in the future.
  • As such this category may change in the future.
  • The higher the category, the greater the potential reward, but also the greater the risk of losing the investment. Category 1 does not indicate a risk free investment.
  • The fund is in this category because it invests in fixed income securities and the fund's simulated and/or realised return has experienced medium rises and falls historically.
  • The fund may be impacted by movements in the exchange rates between the fund's currency and the currencies of the fund's investments.
This rating does not take into account other risk factors which should be considered before investing, these include:
  • The value of bonds are likely to decrease if interest rates rise and vice versa.
  • The value of financial derivative instruments are highly sensitive and may result in losses in excess of the amount invested by the Sub-Fund.
  • Issuers may not be able to repay their debts, if this happens the value of your investment will decrease. This risk is higher where the fund invests in a bond with a lower credit rating.
  • The fund relies on other parties to fulfill certain services, investments or transactions. If these parties become insolvent, it may expose the fund to financial loss.
  • There may be an insufficient number of buyers or sellers which may affect the funds ability to buy or sell securities.
  • Investment in Fixed Income Securities via the China Interbank Bond Market may also entail additional risks, such as counterparty and liquidity risk.
  • Past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. The value of investments and the income from them can go down as well as up and investors may lose all or a substantial portion of his or her investment.
  • The value of the investments and the income from them will vary and there can be no assurance that the Fund will achieve its investment objectives.
  • Investments may be in a variety of currencies and therefore changes in rates of exchange between currencies may cause the value of investments to decrease or increase. Furthermore, the value of investments may be adversely affected by fluctuations in exchange rates between the investor’s reference currency and the base currency of the investments.
 
 
 
 
Composition 4 As of 31-Mar-2018
  Fund
Communications 21.86
Consumer, Cyclical 16.35
Financial 15.11
Industrial 11.28
Consumer, Non-Cyclical 10.17
Utilities 6.78
Basic Materials 6.12
Energy 5.97
Technology 1.69
Other 1.51
Cash & equivalents 3.15
Total 100.00
  Fund
BBB 13.61
BB 53.65
B 25.65
CCC 2.71
Not Rated 1.31
Cash 3.07
Total 100.00


Geography As of 31-Mar-2018
  Fund
United Kingdom 18.11
U.S. 12.58
Italy 10.57
France 9.93
Luxembourg 7.71
Spain 7.31
Germany 6.87
Netherlands 4.51
Ireland 2.02
Other 17.63
Cash & equivalents 2.73
Total 100.00


Holdings As of 31-Mar-2018
Fund
Fiat Fin & Trade Ltd, 6.750000%, 2019-10-14 1.66
Unitymedia Hessen Gmbh & Co. Kg /, 6.250000%, 2029-01-15 1.66
Teva Pharmaceutical Finance Neth, 1.125000%, 2024-10-15 1.56
Softbank Corp, 4.750000%, 2025-07-30 1.41
Altice S.A., 6.250000%, 2025-02-15 1.29
International Game Technology, 4.750000%, 2023-02-15 1.28
Repsol International Finance Bv, 4.500000%, 2075-03-25 1.27
Edp - Energias de Portugal S.A., 5.375000%, 2075-09-16 1.19
Adient Global Holdings Ltd, 3.500000%, 2024-08-15 1.13
Solvay S.A., 5.118000%, 2049-12-31 1.12
Total 13.57

These securities and percentage allocations are only for illustrative purposes and do not constitute, and should not be construed as, investment advice or recommendations with respect to the securities or investments mentioned.



Portfolio Characteristics
Fund Index
Duration (years) 3.57 3.88
Average yield to maturity (%) 3.88 3.38
Number of holdings 163 542
 
 
Portfolio Managers
Managing Director
22 years industry experience
Vice President
9 years industry experience
Team members may be subject to change at any time without notice.
 
 
Insights by Global Fixed Income Team
Global Fixed Income Bulletin
What Can Derail the Carry Trade?
Dec 13, 2017
The Global Fixed Income team discusses how even though markets have run a long way, and future returns are likely to be more modest, the current environment is likely to continue in 2018.
Global Fixed Income Bulletin
Goldilocks Meets the Three Bears
Apr 13, 2018
The Global Fixed Income team discusses how January felt like Golidlock’s conditions for markets, but March brought the three bears of risk—trade war, rising short-term rates and FANG stocks.
 
 
 

Please visit our Glossary page for fund related terms and definitions.

Performance data quoted is based on average annualized returns and net of fees.

The source for all performance and index data is Morgan Stanley Investment Management Limited.

Past performance is not indicative of future results. The value of the investments and the income from them can go down as well as up and an investor may not get back the amount invested. Returns may increase or decrease as a result of currency fluctuations. Performance data for funds with less than one year's track record is not shown. Performance is calculated net of fees. YTD performance data is not annualised. Performance of other share classes, when offered, may differ. Please consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The prospectus and key investor information document (KIID) contains this and other information about the fund. Please read the prospectus and KIID carefully before you invest.

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account sales loads.

The Europe/Asia and South Africa category (EAA) includes funds domiciled in European markets, major cross-border Asian markets where material numbers of European UCITS funds are available (principally Hong Kong, Singapore and Taiwan), South Africa, and selected other Asian and African markets where Morningstar believes it is of benefit to investors for the funds to be included in the EAA classification system.

© 2018 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

2 The ICE BofAML European Currency Constrained high yield index: The index is designed to track the performance of euro- and British pound sterling-denominated below investment grade corporate debt publicly issued in the eurobond, sterling domestic or euro domestic markets by issuers around the world.

The ICE BofAML Merrill Lynch European Currency High Yield 3% Constrained Ex-Sub Financials Index: contains all non-Sub Financial securities in the ICE BofAML European Currency High Yield Index but caps issuer exposure at 3%. Index constituents are capitalization-weighted, based on their current amount outstanding, provided the total allocation to an individual issuer does not exceed 3%.

3 Entry Charge is a maximum possible figure. In some cases you might pay less, you can find this out from your financial adviser. Ongoing Charges reflect the payments and expenses incurred during the fund's operation and are deducted from the assets of the fund over the period. It includes fees paid for investment management (Management Fee), trustee/custodian, and administration charges. The Minimum Initial Investment/Minimum Subsequent Investment amounts may be in US Dollars (or the Euro Yen or Sterling equivalent of the US Dollar amount). For more information please see the Charges and Expenses section of the prospectus.

4 May not sum to 100% due to rounding. For additional information regarding sector classification/definitions please visit www.msci.com/gics and the glossary page. Quality distribution data for securities is sourced from Fitch, Moody's and S&P. Where the credit ratings for individual securities differ between the three ratings agencies, the 'highest' rating is applied. The rating of credit default swaps is based on the 'highest' rating of the underlying reference bond. 'Cash' includes investments in short term instruments, including investments in Morgan Stanley liquidity funds. Cash & Equivalents are defined as the value of assets that can be converted into cash immediately. These include commercial paper, open FX transactions, Treasury bills and other short-term instruments.  Such instruments are considered cash equivalents because they are deemed liquid and not subject to significant risk of changes in values.

Leon Grenyer became the Lead Portfolio Manager of the fund in 2002.

 
 

WAM is the weighted average maturity of the portfolio. The WAM calculation utilizes the interest-rate reset date, rather than a security's stated final maturity, for variable- and floating- rate securities. By looking to a portfolio's interest rate reset schedule in lieu of final maturity dates, the WAM measure effectively captures a fund's exposure to interest rate movements and the potential price impact resulting from interest rate movements.

 

WAL is the weighted average life of the portfolio. The WAL calculation utilizes a security's stated final maturity date or, when relevant, the date of the next demand feature when the fund may receive payment of principal and interest (such as a put feature). Accordingly, WAL reflects how a portfolio would react to deteriorating credit (widening spreads) or tightening liquidity conditions.

 

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