LO Funds
Ultra Low Duration (EUR)

LO Funds - Ultra Low Duration (EUR) is an actively managed fixed income portfolio which launched in May 2017. The strategy invests mainly in: bonds denominated in any currency; public and private issuers (with a minimum rating of BBB-); securitised products such as asset-back securities, residential mortgage backed securities and commercial mortgage backed securities (with a minimum rating of BBB-); money market instruments; and financial derivative instruments such as interest rate swaps, futures on rates and FX forwards. Currency risk is systematically hedged against the EUR. The strategy adopts a conservative investment approach and strict risk controls, with the aim of providing investors with regular income, a high level of liquidity and returns in line with the ESTR Compounded Index. The strategy has a maximum duration of one year and a maximum credit spread duration of two years. It is restricted from investing in securities with a maturity of more than three years and amortising securitised products with a weighted average life over one year. Risk management is performed by fund managers; in addition, automated, pre-trade compliance checks are performed, and independent teams oversee investment risks and operational risks.