Epsilon Fund -
Euro Bond

Finding value by controlling volatility and drawdown

Epsilon Fund – Euro Bond is an actively managed product based on a model geared to achieving an optimal allocation of the risk budget among the various bond strategies, in order to maximize the fund's alpha and keep volatility and drawdown at contained levels.
The fund’s management process is disciplined and begins with an analysis of the economic cycle, taking into account fiscal and monetary policies, growth and inflation trends, to understand whether the market is correctly pricing in the different asset classes and securities. Particular focus is paid to risk control. The management team – that includes over 30 managers who are specialised in all the bond markets and divided by area of competence – also use ESG criteria in the bond picking strategy.

SFDR: The Fund promotes, among other characteristics, environmental or social characteristics as per Article 8 as per Regulation (EU) 2019/2088 on sustainability‐related disclosures in the financial services sector (“SFDR”).

Active management on euro government bonds.
Disciplined investment process geared to ongoing search for alpha and to risk control.
Stable management team, highly specialised in the bond markets.

A success story

Epsilon Fund – Euro Bond has won first prize as best EMU Government Bond fund in the 3-year category at the Lipper Fund Awards* in Switzerland, Austria, France and Nordic Countries. It previously won the award in the 10-year category in 2019.

The fund holds its appeal in both bullish and bearish market phases, ranks in the first quartile of the Morningstar EUR Government Bond category** across time horizons, and stably boasts a five-star Morningstar rating.

See Epsilon Fund - Euro Bond factsheet

Investment Process

Market Analysis
Integration of internal and external analyses, such as macro analysis, fair value analysis, technical factors, and positioning.
View generation
Definition of the investment views and strategies implemented in the strategic portfolio and tactical overlay.
By using the ORBS model (Optimal Risk Budgeting with Skills), we aim to maximise alpha considering the correlations of relative performances and the manager’s ability to choose the right market timing for their implementation within the risk limit.
Portfolio Constraction
The indications provided by the ORBS model drive fund manager choices, for example the weight assigned to the various strategies, the risk contribution of the different strategies, the contribution of alpha generation, the excess return 0.

Creation of Alpha

Target Markets Skill & Performance Contribution  
Duration, Curve Segments and Inflation Linkers EMU Non-EMU  +++ 45%
Country Spread and Swap EMU  +++ 45%
Forex Mostly G 10 currencies   + 5%
Credit EMU Government
EUR Corporate
 + 5%

Main Risks of the sub-fund 

The risk indicator assumes you keep the product for 4 years.

The summary risk indicator level is 2 (which is a low-very low volatility). Investments involve risks. Past performance does not predict future return. There can be no assurance that an investment objective will be achieved or that there will be a return on capital. You may not get back the amount initially invested. Before making any investment decision, investors must read the Prospectus as well as the Key Information Document (KID). The inherent main risks of the sub-fund (non-exhaustive list): Regulatory Risk, Market and Currency Risk, Credit Risk, Interest rate Risk, Counterparty and collateral Risk, Default Risk and Liquidity Risk.
Costs: (Illustrative class: LU0278427041 – registered in AT, BE, DE, DK, ES, FI, FR, IT, LU, NO, SE): Entry charge: 0%, Exit charge: 0%, Ongoing charge: 0,37%, Performance fee: 0,06%. The performance fee calculation is based on a comparison of the net asset value per unit against the High Water Mark where the High Water Mark is defined as the highest net asset value per unit recorded at the end of the five previous financial years, increased by the year-to-date return of the fund's benchmark. The actual amount will vary depending on how well your investment performs. The aggregated cost estimation above includes the average over the last 5 years.

The Fixed Income & FX team

Eurizon excellence in management

The management team is highly specialized by area of competence: a feature that allows it to aim to take advantage of all the opportunities which arise on the market, and to select what they consider as the best strategies.


Key features:

  • 50 billion euros in AUM
  • Team with a long track record in working together
  • 31 Fund Managers with an average experience of 17 years
  • Managing 174 portfolios


* The Refinitiv Lipper Fund Awards 2022 were given to funds registered for sale in the respective geographical region/country, with at least 36 months of performance history as at 31 Dec. 2021. Within each Lipper fund classification, the award-winning fund ranks first in the Lipper Leaders classification in terms of Consistent Return, based on the Effective Return value, a measure of risk-adjusted return on various time horizons (daily, weekly, monthly and/or annual). The calculation periods extend over 3, 5, or 10 years.
Further details on the methodology used available at the following address http://lipperfundawards.com

** Source: Morningstar. A rating / award is drawn for illustration purposes only and is subject to change. It not a recommendation to invest in the Fund. It does not predict future performance of the Fund. There is no guarantee that the investment objective of the Fund will be reached. For more information about the rating / award (methodology, universe taken): https://www.morningstar.com/content/dam/marketing/shared/research/methodology/771945_Morningstar_Rating_for_Funds_Methodology.pdf.
Morningstar Category: Morningstar assigns ratings based on comparisons of all funds within a specific Morningstar Category, rather than all funds in a broad asset class. Morningstar is not responsible for any damages or losses arising from any use of this information. For more information about the Morningstar Category: www.morningstar.com


This marketing communication is exclusively intended for professional investors as defined in the European Directive on markets in financial instruments (MiFID) in the countries where the Sub-Fund(s) is/are registered/authorised for distribution. This marketing communication is not intended for retail investors as per MiFID and is not intended for US Person. Before taking any investment decision, you must read the Prospectus, the Key Information Document (the “KID”), as well as the Management Regulations and the last available annual or semi-annual financial report. These documents are available in English (and the KIDs in an official language of your country of residence) and may be obtained at any time, free of charge on the Management Company’s website www.eurizoncapital.com. To find out whether the Sub-Fund is registered/authorised in your country, please refer to the www.eurizoncapital.com. This document relates to Eurizon Fund (The “Fund”), a Luxembourg UCITS in accordance with Directive 2009/65/CE and pursuant to the Part I of the Law of 17 December 2010 (the “Law of 2010”) on undertaking for collective investment and “Fonds Commun de Placement” (FCP). This document is issued by Eurizon Capital S.A. organized as a public limited company in accordance with the Law of 1915, registered in the Luxembourg Trade and Companies Register under number B.28536 at 28, boulevard Kockelscheuer, L-1821 Luxembourg and authorised as management company of the Fund under the Luxembourg Law of 17 December 2010 on undertaking for collective investment The content of this document, including any opinions, does not constitute any legal, tax or investment advice. Past performance does not predict future returns. There is no guarantee that the positive forecasts mentioned in this document will be reached in the future. Please liaise with your tax and financial advisor to find out whether a product is suitable to your personal situation and understand the related risks and tax impacts. The tax treatment depends on the individual circumstances of each client and may be subject to change in the future. Should the Sub-Fund be registered/authorised in your country, the entity in charge of processing subscription, repurchase and redemption orders and other payments to unit-holders relating to the units of the UCITS (“Order & Paying facilities”), as well the entity in charge of handling information and Fund documents (“Information facilities”). Switzerland: When the Sub-Fund is not registered with the Swiss Financial Market Supervisory Authority (FINMA), this marketing communication is exclusively intended for Swiss Professional investors/Institutional investors as per Article 4(3) and 4(4) of Federal Act on Financial Services (FinSA).When the Sub-Fund is registered with the Swiss Financial Market Supervisory Authority (FINMA), this marketing communication is intended for Swiss Retail investors as per Article 4(2) of the Federal Act on Financial Services (FinSA) or for Swiss Professional investors/Institutional investors as per Article 4(3) and 4(4) of FinSA. Swiss Fund documents available at the Swiss representative agent: 62, rue du Rhône, 1204 Geneva, Switzerland.

This website uses technical cookies and so-called analytical cookies of "third parties" to ensure its technical operation and to analyze website's visits in an aggregated and anonymous way. For further information on cookie management, it is possible to consult the dedicated information notice.