INVESTMENT CAPABILITIES

European Aggregate

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This strategy invests in treasury, government-related, corporate and securitized fixed-rate bonds from European issuers, with an allowance for opportunistic exposure to the emerging markets issuers. The strategy is typically benchmarked to the Bloomberg Euro Aggregate Bond Index and can be managed on a currency hedged or unhedged basis.

Click here to learn about Mondrian’s Global Fixed Income investment team.

Why Mondrian for Fixed Income?

Some of the longest track records in the industry – also, some of the strongest

  • Financially robust, employee-owned firm – long-term continuity and stability
  • Stable, well-resourced team with expert knowledge of the asset class
  • Disciplined process that has been shown to work over a long period
  • Not reliant on “star managers” with potentially unrepeatable calls
  • Nimble – manageable AUM and focused team means we can continue to rapidly exploit opportunities
  • Comprehensive ESG integration and engagement – sovereign and corporate investment process awarded 5 Stars in the most recent PRI assessment*
  • Competitive management fees

* PRI (Principles for Responsible Investment) scores are based on information reported directly by PRI signatories. All signatories are required to participate and must complete the Reporting Framework to be included. Scores are not indicative of past or future investment performance. Mondrian has not solicited or paid for any of these scores. Mondrian pays signatory dues as part of its obligations as a signatory to the PRI.

Please refer to www.unpri.org for the PRI assessment methodology. Mondrian’s full Assessment Report and Transparency Report may be requested via the PRI Data Portal.

2021 PRI Assessment Scores: Investment & Stewardship Policy: 3 Stars; Direct-Listed equity-Active fundamental–incorporation: 4 Stars; Direct-Listed equity-Active fundamental–voting: 3 Stars; Direct-Fixed income–SSA: 5 Stars; Direct-Fixed income–Corporate: 5 Stars.

Performance

As of September 30, 2023

European Aggregated Fixed Income Composite (EUR)

Inception Date: June 1, 2004
Source: Mondrian Investment Partners/Bloomberg
Past performance is not a guide to future performance. The value of investments and income from then can fall as well as rise and investors may not get back the original amount invested. Performance results marked “Gross” do not reflect deduction of investment advisory fees but are net of transaction costs and withholding tax. Investment returns will be reduced accordingly. Performance returns marked “Net” reflect deduction of investment advisory fees and are calculated by deducting a quarterly indicative fee from the quarterly composite return. Please see important information below.
Periods over 12 months are annualized. 
Mondrian Investment Partners Limited (“Mondrian”) claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. A GIPS Composite Report is available on request from mondrian.website@mondrian.com.
 
This introductory material is for informational purposes only and is not an offer or solicitation with respect to any securities. Any offer of securities can only be made by written offering materials, which are available solely upon request, on an exclusively private basis and only to qualified financially sophisticated investors residing in jurisdictions consistent with Mondrian’s regulatory authorizations. The information set forth herein is a summary only and does not set forth all of the risks associated with the investment strategy described herein.  
Views expressed were current as of the date indicated, are subject to change, and may not reflect current views. Views should not be considered a recommendation to buy, hold or sell any security and should not be relied on as research or investment advice.
These materials may include forward-looking statements. All statements other than statements of historical facts are forward-looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” “expect”). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Various factors could cause actual results or performance to differ materially from those reflected in such forward-looking statements.
Calculations for P/E, P/B, dividend yield, sector country allocations, market caps, yield to maturity, modified duration, average maturity, average quality and country allocations are based on generally accepted industry standards. All characteristics are based on a representative account and derived by first calculating the characteristics for each security, and then calculating the weighted average of these values. The details of exact calculations can be provided upon request. All characteristic data provided is produced using Mondrian’s accounting system data.
There can be no assurance that the investment objectives of the strategy will be achieved.
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As of September 30, 2023
Characteristic
Mondrian
Bloomberg Euro Aggregate Bond Index
Yield to Maturity (%)
4.1
3.8
Modified Duration (years)
6.5
6.2
Average Maturity (years)
7.6
7.5
Average Credit Rating
A+
A+
Number of Issues
101
7,019
Information Ratio (3 years)
1.03
-

Source: Mondrian Investment/Bloomberg

News and Insights

Mondrian’s Purchasing Power Parity (PPP) Approach

•
November 2, 2023

Reading Time: 2 minutes Purchasing Power Parity method (PPP) provides a consistent measure of value across all currencies – a process we have employed since the founding of our firm in 1990.

US Dollar Beginning to Fall Sharply

•
April 24, 2023

Reading Time: 2 minutes Only the second time the USD has been over 2 standard deviations overvalued, If history is any guide, the dollar could have much further to fall, boosting the return on unhedged global bonds vs US domestic bonds.

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