Fix Income

Fix Income Exposure to a broad range of U.S. high yield corporate bonds combined with VIX derivatives arbitration.

Dividends
Risk profile
Total return

Key takeaways

IPO-FUND
  • Exposure to a broad range of U.S. high yield corporate bonds
  • Number of Holdings 967 (excluding cash positions and derivatives)
  • 7.24% average annual income: 6,2% coupon of the underlying bonds in the fund, weighted by each bond's face value plus additional option premium.
AVALIABLE on IB

Principal Investment Strategies

The Strategy intends to deliever Fixed Income returns by investing in low risk securities that pay predictable interest. Various methodologies can be employed to generate steady returns. Building a fixed income portfolio may include investing in bonds as well as bond mutual funds, certificates of deposit (CD), and money market funds. On Capital fixed income strategies offer flexible investment opportunities that generate regular interest income, liquidity, and portfolio diversification.

Investment Objective

The Global High Yield strategy invests in high yield corporate bonds of primarily U.S.- and European-based companies, with a focus on income and capital appreciation coming mostly from security selection.

Trading Metodology

The portfolios will be broadly diversified across industries and individual companies, primarily in the United States and Europe, this will help to avoid unnecessary concentration or liquidity risk. The portfolio uses pre-set security and portfolio risk controls with pre-defined exit strategies before investing. These dynamic risk measures allow us to help limit risk when needed, and increase risk when warranted.

Interactive Brokers

Brokerage account in IBKR belongs to the client. On Capital has an ability to place trade orders on the client's account. Deposits and fund withdrawals are available only to the client. Access to the account and funds is provided 24/7.

Historical returns

Cumulative total returns index
Average annualized returns
2015
-0.05%
2016
14.69%
2017
11.49%
2018
5.81%
2019 (Q1)
10.8%

Key facts

Ratings Breakdown (%)
Maturity Breakdown (%)
Top holdings (%)
BLK CSH FND TREASURY SL AGENCY
0.67
ALTICE FRANCE SA (FRANCE)
0.61
SPRINT CORP
0.51
TRANSDIGM INC
0.38
BAUSCH HEALTH COMPANIES INC
0.38
CCO HOLDINGS LLC
0.37
INTELSAT JACKSON HOLDINGS SA
0.36
TENET HEALTHCARE CORPORATION
0.36
CHS/COMMUNITY HEALTH SYSTEMS
0.36
ALTICE LUXEMBOURG SA
0.35

Credit quality ratings on underlying securities of the fund are received from S&P, Moody's and Fitch and converted to the equivalent S&P major rating category. This breakdown is provided by BlackRock and takes the median rating of the three agencies when all three agencies rate a security and one rating if that is all that is provided. Unrated securities do not nessarily indicate low quality.

Fund characteristics
Weighted Average Maturity
5.11 yrs
Standard Deviation (3yrs)
4.14%
Effective Duration
3.91

GLOSSARY
Weighted Average Maturity
is the length of time until the average security in thefund will mature or be redeemed by its issuer. It indicates a fixed incomefund's sensitivity to interest rate changes. Longer average weighted maturityimplies greater volatility in response to interest rate changes.


Effective Duration  
is a measure of the potential responsiveness ofa bond or portfolio price to small parallel shifts in interest rates. EffectiveDuration takes into account the possible changes in expected bond cash flowsdue to small parallel shifts in interest rates.

1
COMPANY SEARCH

OnCapital's group of analysts conducts a permanent search for offers on the OTC market to identify companies with the possibility of multiple capitalization growth. Our specialists make an analysis of financial statements and descriptions of the company's business, main points of growth, as well as possible risks that may obstruct business development.

2
BUYING SHARES

As part of the service to purchase shares in the over-the-counter securities market, OnCapital considers several counterparties owning shares of private companies. These financial institutions invest in private companies in the early stages or acquire shares from employees.

3
start TRADING

After the IPO, all shares are held by OnCapital custodian. Sale is carried out after an expiration of the lock-up period. Our company also provides customers with an opportunity to hedge assets for the entire term of withholding.

4
profit gain

After the lock-up period is over, the investment is automatically closed and profit from trade the is sent to the client's account.

Клиентам доступны практически все первичные размещения акций компаний на биржах NYCE и NASDAQ. Мы собираем одну большую заявку и приобретаем акции по лучшей цене до начала публичных торгов с обязательством не продавать их в течение трех месяцев. Результаты наших рекомендаций можно увидеть на графике. Большинство таких торговых идей приносят десятки процентов прибыли.

1
ОПЫТ

Путем всестороннего финансового и стратегического аназлиза наши эксперты отбирают перспективные компании, выходящие на IPO.

2
преимущества

Активное взаимодейсвтие с андеррайтерами дает нам возможность приобретать акции компаний на стадии IPO без lock-up периода.

3
СНИЖЕНИЕ РИСКА

Доступ OnCapital к книге заявок андеррайтеров значительно снижает риск приоберетения неперспективных акций.