EuroPac
International Bond Fund
EPBIX (I Share)
EPIBX (A Share)
Purpose
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.
Process
Our process begins with a thorough and complete review of all investible companies within our universe. This review is both qualitative and quantitative, with the goal of identifying exceptional companies with strong balance sheets, that are positioned in industries with positive long-term prospects. The highest quality businesses are then valued and placed on a watch list. We will then patiently wait until a business on the watch list hits our target buy price, which incorporates a large margin of safety. By focusing on the long term and having a low portfolio turnover, we believe we are able to increase the chances of successful security selection.
Funds
Rating
Issuer
| Government | 45.0% |
| Corporate | 32.7% |
| Supranational | 22.3% |
Regions
| Supranational | 27.2% |
| Mexico | 6.5% |
| Norway | 6.4% |
| Australia | 6.0% |
| Poland | 5.2% |
| Singapore | 4.7% |
| Malaysia | 4.4% |
| Malta | 4.2% |
| Colombia | 4.1% |
| Netherlands | 4.0% |
Currency
| EUR | 17.9% |
| MXN | 9.9% |
| BRL | 8.8% |
| INR | 8.1% |
| IDR | 7.3% |
| NOK | 6.4% |
| AUD | 5.7% |
| PLN | 5.2% |
| COP | 5.1% |
| SGD | 4.7% |
