USD Investment Grade Credit Fund

$96.86
NAV

+$0.20 / +0.21%
1-day change
$362.1M
Fund assets
3.84%
Distribution yield
2.67%
Year-to-date return
Data as of 12/20/2024
USD Investment Grade Credit (UCITS)
Fund overview
Seeks to maximise investment income
The USD Investment Grade Credit Fund focuses on fundamental, bottom-up credit research by way of well-underwritten credits with a competitive yield advantage and relative value.

Seeks total return, maximising investment income whilst preserving capital, by investing at least two-thirds of its assets in investment-grade US$-denominated credit debt securities

Key differentiators

  • Focuses on bottom-up credit research and security selection as the primary source of alpha
  • Balances competitive income and a sell discipline driven by valuation and fundamental factors
  • Fully integrated team focused on income and less efficient market sectors

General facts

ISIN

LU1528096461

SEDOL

BDJ0BG4

Bloomberg

WFUIIDU LX

SFDR classification

8

Minimum investment

$1,000,000

Fund inception date

12/15/2016

Share class launch date

12/15/2016

Annual management fee

0.30%

Total expense ratio (TER)

0.44%

(as of 8/31/2024)

Benchmark name

Bloomberg U.S. Credit Bond Index

Settlement

T+2

Quick resources

Fact Sheet Fact Sheet Fact Sheet Fact Sheet Fact Sheet

Morningstar Rating™

Out of 315 funds, USD Corporate Bond As of 11/30/2024

Performance

Past performance is not indicative of future results.

Calendar year

Calendar year

(as of 12/31/2023)
2023
2022
2021
2020
2019
2018
2017
Fund
8.01
-16.08
-1.47
11.34
15.20
-2.46
6.87
Benchmark
8.18
-15.26
-1.08
9.35
13.80
-2.11
6.18
Average annual returns

Average annual returns

(as of 11/30/2024)
12/15/2016
1M
3M
YTD
1Y
3Y
5Y
10Y
Inception
Fund
1.26
0.57
4.52
8.66
-1.85
0.82
-
2.94
Bloomberg U.S. Credit Bond Index
1.27
0.51
3.99
8.36
-1.60
0.68
-
2.69
Expenses (as of 8/31/2024)
Annual management fee
0.30 %
Total expense ratio (TER)
0.44 %

The ongoing charges/total expense ratio (TER) reflects annual total operating expenses for the class, excludes transaction costs and is expressed as a percentage of net asset value. The figure shown is from current KID. The investment manager has committed to reimburse the Sub-Fund when the ongoing charges exceed the agreed upon TER. Ongoing charges may vary over time.

Past performance is not indicative of future results. Performance calculations are net of all applicable fees and are calculated on a NAV-to-NAV basis (with income re-invested). Performance shown is for class and currency indicated and returns may increase/decrease as a result of currency fluctuations. 

Cumulative

Cumulative

(as of 11/30/2024)

This chart shows the value of a hypothetical $10,000 investment in the fund over the specified time period up to 10 years or since its inception (for funds lacking 10-year records). The result is compared with benchmarks, which may include a broad-based market index and a peer group average or index. Market indexes do not include expenses, which are deducted from fund returns as well as mutual fund averages and indexes.

Does not include sales charges and assumes reinvestment of dividends and capital gains. If sales charges were included, returns would be lower.

Performance and volatility metrics

Performance and volatility metrics

(as of 11/30/2024)
3 Year 5 Year
Alpha -0.25 0.15
Beta 1.00 0.99
Sharpe Ratio -0.63 -0.20
Standard Deviation 9.14 8.44
R2 0.99 0.99
Information Ratio -0.31 0.18
Upside Market Capture Ratio 97.90 100.89
Downside Market Capture Ratio 100.18 99.56
Tracking Error 0.78 0.80
Correlation 1.00 1.00
Treynor Ratio -0.06 -0.02
Morningstar ratings and rankings

Morningstar ratings and rankings

(as of 11/30/2024)
Overall
USD Corporate Bond (Out of 315 funds)
Three Year
51st percentile (148 out of 315)
Five Year
35th percentile (91 out of 258)
Ten Year
percentile out of 112

For illustrative purposes only. Ratings and awards are not an indication, promise, or guarantee of future performance. Ratings and awards should not be relied upon when making an investment decision. The Overall Morningstar Rating™ is a weighted average of the 3-, 5-, and 10-year (if applicable) ratings and is based on risk-adjusted return. Past performance is no guarantee of future results.

The Morningstar absolute ranking is based on the fund’s total return rank relative to all funds that have the same category for the same time period. Morningstar rankings do not include the effect of sales charges. Past performance is no guarantee of future results.

Prices, yields and distributions

Historical prices
YTD high $101.18 9/16/2024
YTD low $94.10 4/16/2024
52-week high $101.18 9/16/2024
52-week low $94.10 4/16/2024
2023 high $98.55 12/27/2023
2023 low $89.20 10/19/2023
Best quarterly return 8.68% 6/30/2020
Worst quarterly return -7.65% 6/30/2022
Best annual return 15.20% 12/31/2019
Worst annual return 0.00% 12/31/2016

Distribution summary
Dividends Monthly
Capital gains Annually

Yields

Yield Statistic Date
Distribution yield 3.84% 12/20/2024
Yield to maturity 5.18% 11/30/2024
Yield to worst 5.09% 11/30/2024

Distribution history

Distribution history Type Per share amount Reinvestment price
2024-12-02 Dividend $0.31552891 $98.75
2024-12-01 Dividend $0.31552891 $98.75
2024-11-30 Dividend $0.31552891 $98.75
2024-11-04 Dividend $0.36752019 $97.72
2024-10-01 Dividend $0.30903929 $100.67
2024-09-03 Dividend $0.35058901 $99.42
2024-08-01 Dividend $0.32601758 $98.10
2024-07-01 Dividend $0.30286775 $95.48
2024-06-03 Dividend $0.3269935 $96.14
2024-05-02 Dividend $0.32744385 $94.90
2024-04-02 Dividend $0.31525625 $96.05
2024-03-01 Dividend $0.3108658 $96.40
2024-02-01 Dividend $0.29531594 $98.21
2024-01-02 Dividend $0.29569076 $97.44
2023-12-01 Dividend $0.28271629 $95.20
2023-11-02 Dividend $0.29356387 $91.03
2023-10-02 Dividend $0.30370666 $90.77
2023-09-01 Dividend $0.24601014 $93.69
2023-08-01 Dividend $0.25641015 $94.58
2023-07-03 Dividend $0.26391609 $94.96
2023-06-01 Dividend $0.24557358 $95.34
2023-05-02 Dividend $0.25383569 $96.03
2023-04-03 Dividend $0.26072459 $96.48
2023-03-01 Dividend $0.25519227 $93.95
2023-02-01 Dividend $0.22407372 $98.18
2023-01-03 Dividend $0.31384666 $94.21
2022-12-01 Dividend $0.22203479 $95.80
2022-11-02 Dividend $0.21905441 $90.81
2022-10-03 Dividend $0.23980544 $92.90
2022-09-01 Dividend $0.22445052 $96.20
2022-08-01 Dividend $0.22295557 $100.61
2022-07-01 Dividend $0.22426261 $97.73
2022-06-01 Dividend $0.21507218 $100.08
2022-05-02 Dividend $0.23314162 $99.17
2022-04-01 Dividend $0.21217338 $105.76
2022-03-01 Dividend $0.20703264 $109.68
2022-02-01 Dividend $0.18666725 $111.25
2022-01-03 Dividend $0.23626247 $113.68
2021-12-01 Dividend $0.20317566 $115.34
2021-11-02 Dividend $0.20970306 $115.38
2021-10-01 Dividend $0.19154562 $115.91
2021-09-01 Dividend $0.17047451 $116.92
2021-08-02 Dividend $0.1999762 $117.72
2021-07-01 Dividend $0.19550664 $115.90
2021-06-01 Dividend $0.1931714 $114.24
2021-05-03 Dividend $0.35098947 $113.85
2021-04-01 Dividend $0.18598738 $113.51
2021-03-01 Dividend $0.23715463 $114.73
2021-02-01 Dividend $0.19645696 $117.50
2021-01-04 Dividend $0.24595687 $118.89
2020-12-01 Dividend $0.25637475 $118.43
2020-11-02 Dividend $0.2303225 $115.94
2020-10-01 Dividend $0.27134678 $116.18
2020-09-01 Dividend $0.27434252 $117.11
2020-08-03 Dividend $0.26977008 $118.51
2020-07-01 Dividend $0.24340451 $115.51
2020-06-02 Dividend $0.23580757 $113.37
2020-05-04 Dividend $0.25954336 $110.64
2020-04-01 Dividend $0.29737355 $106.36
2020-03-02 Dividend $0.27290481 $113.35
2020-02-03 Dividend $0.2913672 $112.50
2020-01-02 Dividend $0.28088131 $110.33
2019-12-02 Dividend $0.28884809 $109.54
2019-11-04 Dividend $0.32310619 $109.45
2019-10-01 Dividend $0.2720587 $109.77
2019-09-03 Dividend $0.31255363 $110.52
2019-08-01 Dividend $0.31342151 $108.16
2019-07-01 Dividend $0.27138984 $107.04
2019-06-03 Dividend $0.30103958 $104.93
2019-05-02 Dividend $0.3080955 $103.16
2019-04-01 Dividend $0.2971224 $102.70
2019-03-01 Dividend $0.28022234 $100.72
2019-02-01 Dividend $0.28278684 $100.71
2019-01-02 Dividend $0.30856854 $98.81
2018-12-03 Dividend $0.3083406 $98.16
2018-11-02 Dividend $0.29626437 $98.10
2018-10-01 Dividend $0.26126366 $100.20
2018-09-04 Dividend $0.36115409 $100.45
2018-08-01 Dividend $0.27784176 $100.32
2018-07-02 Dividend $0.29779401 $99.80
2018-06-01 Dividend $0.27240089 $100.33
2018-05-02 Dividend $0.29851496 $100.13
2018-04-03 Dividend $0.26982338 $101.61
2018-03-01 Dividend $0.26174859 $101.81
2018-02-01 Dividend $0.24687916 $103.10
2018-01-02 Dividend $0.25959061 $104.26
2017-12-01 Dividend $0.24583182 $104.53
2017-11-02 Dividend $0.26845756 $104.72
2017-10-02 Dividend $0.27753762 $104.55
2017-09-01 Dividend $0.267029 $104.82
2017-08-01 Dividend $0.25103528 $104.63
2017-07-03 Dividend $0.27917769 $103.45
2017-06-01 Dividend $0.25013587 $103.61
2017-05-02 Dividend $0.16585517 $102.84
2017-04-03 Dividend $0.26348343 $102.10
2017-03-01 Dividend $0.26660983 $101.55
2017-02-01 Dividend $0.23980819 $100.90
2017-01-03 Dividend $0.08759454 $100.98
Download CSV

The distribution yield is based on the actual distributions paid by the fund. The distribution yield is calculated by summing the fund’s distributions over the preceding 12 months and dividing that figure by the applicable share price at the end of the period.

Composition

Portfolio statistics

Portfolio statistics

(as of 11/30/2024)
Fund Benchmark
Number of Holdings 199 9043
Number of Issuers 132.00 1,189.00
Effective Duration 6.82 6.81
Weighted Average Effective Maturity 10.41 Years 10.56 Years
Average Credit Rating A- A-
Average Maturity 11.88 Years 10.85 Years
Credit Spread Duration 6.92 6.85

Placement within the Morningstar Fixed-Income Style Box™ is based on two variables: the vertical axis shows the credit quality of the long bonds owned and the horizontal axis shows interest rate sensitivity as measured by a bond's effective duration. For credit quality, Morningstar combines the credit rating information provided by the fund companies with an average default rate calculation to come up with a weighted average credit quality. The weighted average credit quality is currently a letter that roughly corresponds to the scale used by a leading NRSRO. Bond funds are assigned a style box placement of low, medium, or high based on their average credit quality. Funds with a low credit quality are those whose weighted average credit quality is determined to be less than BBB-, medium are those less than AA- but greater or equal to BBB-, and high are those with a weighted average credit quality of AA- or higher. When classifying a bond portfolio, Morningstar first maps the NRSRO credit ratings of the underlying holdings to their respective default rates (as determined by Morningstar’s analysis of actual historical default rates). Morningstar then averages these default rates to determine the average default rate for the entire bond fund. Finally, Morningstar maps this average default rate to its corresponding credit rating along a convex curve. For municipal bond funds, Morningstar also obtains from fund companies the average effective duration. In these cases static breakpoints are used. These breakpoints are as follows: (i) Limited: 4.5 years or less; (ii) Moderate: more than 4.5 years but less than 7 years; and (iii) Extensive: more than 7 years. In addition, for non-U.S. taxable and non-U.S. domiciled fixed-income funds, static duration breakpoints are used: (i) Limited: less than or equal to 3.5 years; (ii) Moderate: greater than 3.5 years and less than or equal to 6 years; and (iii) Extensive: greater than 6 years.

Credit quality

Credit quality

(as of 11/30/2024)
Type
Fund
Benchmark
AA/Aa
 9.17% 9.19%
A/A
 38.21% 40.10%
BBB/Baa
 51.80% 43.98%
BB/Ba
 0.36% -
Cash & equivalents
 0.46% -

The ratings indicated are from Standard & Poor's, Fitch Ratings Ltd., and/or Moody's Investors Service. The percentages of the fund's portfolio with the ratings depicted in the chart are calculated based on total investments of the fund. If a security was rated by all three rating agencies, the middle rating was used. If rated by two of three rating agencies, the lower rating was used, and if rated by one of the agencies, that rating was used. Credit quality is subject to change and may have changed since the date specified. Percent total may not add to 100% due to rounding.

Maturity

Maturity

(as of 11/30/2024)
Maturity Range
Fund
0 - 3 years
11.52%
3 - 5 years
20.38%
5 - 10 years
46.00%
10+ years
22.11%

Based on ending weights as of month-end. Percent total may not add to 100% due to rounding.

Holdings

Top 10 holdings

(as of 11/30/2024)
Security
Fund
US Treasuries
1.54%
US Treasuries
1.42%
Micron Technology, Inc.
1.24%
American Tower Corporation
1.14%
Danske Bank A/S
1.14%
Dell International LLC
1.08%
JPMorgan Chase & Co.
1.08%
Citigroup Inc.
1.07%
Manufacturers and Traders Trust Company
1.05%
Morgan Stanley
1.03%
View All Holdings
Top 10 represents 11.81% of total net assets
Portfolio Composition

Portfolio composition

(as of 11/30/2024)
Credit Assets
Allocation
U.S. treasuries
7.52%
Corporate bonds
92.48%

Portfolio composition is subject to change and may have changed since the date specified. Percent total may not add to 100% due to rounding.

ESG data summary

MSCI Overall ESG Score 1
Portfolio
6.8
Index
6.6
Sustainalytics ESG Risk Score 2
Portfolio
19
Index
22
SFDR Rating
 
8

Product involvement 3

Portfolio Benchmark
Controversial Weapons exposure 0.00% 1.96%
Oil Sands exposure 0.00% 0.19%
Small Arms exposure 0.00% 0.00%
Thermal Coal exposure 0.00% 0.75%
Tobacco exposure 0.00% 1.03%
UN Global Compact non-compliant exposure 0.00% 1.29%

¹ Data is sourced from MSCI ESG Research where companies are rated on a scale of 0 – 10 (0 - worst, 10 - best). Weighted average scores exclude effects of unrated securities.

² ESG Risk Ratings measure exposure to and management of ESG risks. Lower risk scores reflect less ESG risk. Sustainalytics ESG Risk Scores measure ESG risks on a scale of 0 – 100 (0 - no ESG Risk, >40 - Severe ESG Risk).

³ Carbon emissions includes operational and first-tier supply chain greenhouse gas emissions. Data sourced from S&P Trucost Limited.

⁴ Source: Allspring Global Investments. This report contains information developed by Sustainalytics. Such information and data are proprietary of Sustainalytics and/or its third-party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers. Copyright © 2023 Sustainalytics. All rights reserved.

Documents

Literature Date Language
Commentary 9/30/2024 English Download
Fact Sheet 11/30/2024 English Download
Fact Sheet 11/30/2024 French Download
Fact Sheet 11/30/2024 German Download
Fact Sheet 11/30/2024 Italian Download
Fact Sheet 11/30/2024 Spanish Download
Fact Sheet 11/30/2024 Korean Download
Fund Profile 12/31/2023 English Download
Regulatory Document Date Language
KIID 12/4/2024 English Download
Lux Fund Sustainability-Related Disclosures 10/31/2024 English Download
PRIIPs KIDs 12/4/2024 English Download
PRIIPs KIDs 12/4/2024 German Download
PRIIPs KIDs 10/8/2024 French Download
PRIIPs KIDs 12/4/2024 French Download
PRIIPs KIDs 12/4/2024 Finnish Download
PRIIPs KIDs 12/4/2024 Dutch Download
PRIIPs KIDs 12/4/2024 Swedish Download
PRIIPs KIDs 10/8/2024 Spanish Download
PRIIPs KIDs 12/4/2024 Norwegian Download
PRIIPs KIDs 12/4/2024 Portuguese Download
Our team
Meet the investment team

To deliver strong performance for clients, the team maintains an intense focus on finding high-quality, well-underwritten bonds with a competitive income advantage.

View Team
Scott

Scott Smith

Head of Investment Grade Income
Jonathan

Jonathan Terry

Portfolio Manager

Key risks

Debt securities risk: Debt securities are subject to credit risk and interest rate risk and are affected by an issuer’s ability to make interest payments or repay principal when due.

Asset-backed securities risk: Asset-backed securities may be more sensitive to changes in interest rates and may exhibit added volatility, known as extension risk, and are subject to prepayment risk.

High yield securities risk: High yield securities are rated below investment grade, are predominantly speculative, have a much greater risk of default and may be more volatile than higher-rated securities of similar maturity.

ESG risk: Applying an ESG screen for security selection may result in lost opportunity in a security or industry resulting in possible underperformance relative to peers. ESG screens are dependent on third-party data and errors in the data may result in the incorrect inclusion or exclusion of a security.

Contingent convertible bonds risk: These instruments can be converted from debt into equity because of the occurrence of certain predetermined trigger events including when the issuer is in crisis resulting in possible price fluctuations and potential liquidity concerns.

Geographic concentration risk: Investments concentrated in specific geographic regions and markets may be subject to greater volatility due to economic downturns and other factors affecting the specific geographic regions.

Global investment risk: Securities of certain jurisdictions may experience more rapid and extreme changes in value and may be affected by uncertainties such as international political developments, currency fluctuations and other developments in the laws and regulations of countries in which an investment may be made.

Leverage risk: The use of certain types of financial derivative instruments may create leverage which may increase share price volatility.

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Investors should note that, relative to the expectations of the Autorité des Marchés Financiers, this fund presents disproportionate communication on the consideration of non-financial criteria in its investment policy.
 

The ongoing charges/total expense ratio (TER) reflects annual total operating expenses for the class, excludes transaction costs and is expressed as a percentage of net asset value. The figure shown is from current KID. The investment manager has committed to reimburse the Sub-Fund when the ongoing charges exceed the agreed upon TER. Ongoing charges may vary over time.
 

Any benchmark referenced is for comparative purposes only, unless specifically referenced otherwise in this material and/or in the prospectus, under the Sub-Funds’ Investment Objective and Policy.
 

†Promotes environmental and social characteristics but does not have a sustainable investment objective
 

†While the Sub-Funds listed above have access to both internal and external ESG research and integrate financially material sustainability risks into their investment decision-making processes, ESG-related factors are considered but not determinative, permitting the relevant Sub-Investment Managers to invest in issuers that do not embrace ESG; as such, sustainability risks may have a more material impact on the value of the Sub-Fund’s investments in the medium to long term. The investments underlying these Sub-Funds do not take into account the EU criteria for environmentally sustainable economic activities.
 

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 Morningstar Rating does not include any adjustment for sales loads. 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 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% 3-year rating for 36–59 months of total returns, 60% 5-year rating/40% 3-year rating for 60–119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-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 3-year period actually has the greatest impact because it is included in all three rating periods. Past performance is no guarantee of future results.

© 2024 Morningstar. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and 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.