EuroPac International Bond Fund
At a Glance
As of June 30, 2023
About the Fund
The Europac International Bond Fund offers a distinct combination of developed markets and emerging markets, in highly-rated bonds, with a low duration and no hedging to the US Dollar. This means that you can access the potential growth and income opportunities of international bond markets, without taking on excessive interest rate risk or currency risk.
Unlike many other international bond funds, the Europac International Bond Fund does not hedge its currency exposure back to the US Dollar. This means that you can benefit from the diversification and appreciation of non-USD currencies, especially in times of US Dollar weakness. Many other bond funds have no currency limitations, and will actively hedge back into the USD without notice. This may leave some advisors or investors thinking they are diversified when in fact, they are not.
Another advantage of the Europac International Bond Fund is that it does not have too much exposure to one foreign currency, like the Yen or Euro, which is a problem with many other international bond funds trying to match their benchmarks. The fund invests in a balanced mix of developed and emerging market bonds, in various currencies, such as the Euro, the British Pound, the Australian Dollar, the Canadian Dollar, the Swiss Franc, Indonesian Rupee, Mexican Peso, the Norwegian Krone, the Swedish Krona, the Singapore Dollar, the Hong Kong Dollar, and more. This way, you can instantly diversify your clients into non-USD bonds today, without worrying about having too much exposure to one foreign currency.
The Europac International Bond Fund also focuses on high quality bonds, with an overall investment grade rating or higher. The fund invests in sovereign and corporate bonds from countries with strong economic fundamentals and stable political systems. The fund avoids bonds from countries with high debt levels, fiscal deficits, or political instability. The fund also has a lower relative duration, which means that it is less sensitive to changes in interest rates than longer-term bonds.
The Europac International Bond Fund is a great way to get immediate currency diversification, with high quality bonds, and the potential for attractive yield.
The Fund uses a top-down allocation approach to select what it views as the most fundamentally sound countries and currencies to invest in and a bottom-up approach to select undervalued government and corporate bonds.
As of June 30, 2023 | % of Total Portfolio Holdings