Silverdale Bond Fund ACC

Fund Snapshot

 

ISIN	SGXZ66077579
Investor Category	Institutional
Inception Date	Sep 20, 2019
Fund AUM	5M
Fund AUM Date	Jul 8, 2022
Drawdown Risk	High

 

Fees

Expense Ratio	Not Applicable
Fund Sales charge	1.00%
Fund Management Fee	0.50%
Fund Performance Fee	Not Applicable
Other charges	Entry Load: 1% of the subscription amount Exit Load: 0.25%

Subscriptions

Frequency	Weekly
Cutoff Date	17 Mar 2026 6:00 PM SGT
Estimated Nav Date	Mar 18, 2026
Estimated Settlement Date	Apr 7, 2026
Minimum Initial	USD 25,000.00
Minimum Subsequent	USD 25,000.00

 

Fund Overview

The Silverdale Bond Fund is a long-only leveraged fixed income strategy structured as a sub-fund within a Singapore Variable Capital Company (VCC). The fund focuses on generating consistent income by investing primarily in investment-grade fixed income securities issued by emerging market borrowers, with a strong allocation toward Asian issuers.   The strategy mainly invests in U.S. dollar-denominated bonds, which helps reduce currency risk while maintaining exposure to credit opportunities across emerging markets. A defining feature of the fund is its short-duration positioning, with portfolio duration typically maintained below two years, helping limit sensitivity to interest rate movements.   The portfolio is built with strict diversification guidelines. Individual security exposure is capped at less than 5%, ensuring that no single issuer dominates the portfolio. The fund also utilizes leverage of up to 2×, which allows it to enhance the overall yield generated from the underlying bond holdings.   The strategy targets an internal rate of return (IRR) of 8–10% annually and offers weekly liquidity to investors. However, in extreme market conditions, the fund retains the ability to temporarily restrict redemptions in order to protect portfolio stability. The fund has maintained a track record of approximately 10 years, demonstrating operational and investment continuity.

Portfolio Construction

The Silverdale Bond Fund portfolio is built around three primary objectives: diversification, short-duration credit exposure, and liquidity management. The strategy focuses on investing in investment-grade emerging market bonds, with a significant allocation toward Asian issuers, which make up at least 75% of the portfolio. Most investments are made in U.S. dollar-denominated securities, helping reduce currency volatility while maintaining exposure to emerging market credit opportunities.

Core Portfolio Structure

Portfolio Attribute	Specification
Primary Asset Class	Emerging Market Investment Grade Bonds
Currency	U.S. Dollar Denominated
Regional Allocation	Minimum 75% Asia Exposure
Portfolio Duration	Less than 2 Years
Maximum Issuer Exposure	Below 5%
Leverage	Up to 2×
Liquidity	Weekly (subject to restrictions during stressed markets)

  Security selection follows a credit-driven research process, where issuers are evaluated based on factors such as financial stability, balance sheet strength, and debt servicing capacity across different economic scenarios. By prioritizing investment-grade issuers, the fund aims to balance yield generation with relatively lower credit risk compared to lower-rated bond strategies.   Diversification plays a central role in the portfolio design. Exposure to any single issuer is limited to less than 5%, ensuring that risk is distributed across a wide range of companies and sectors. This approach reduces the potential impact of credit events tied to individual issuers.

Risk and Return Parameters

Risk Metric	Portfolio Approach
Interest Rate Sensitivity	Short duration (<2 years) to reduce rate volatility
Credit Risk	Focus on investment-grade issuers
Diversification	Strict issuer exposure cap (<5%)
Yield Enhancement	Controlled leverage up to 2×
Liquidity Management	Preference for actively traded securities

The portfolio maintains a short-duration structure, typically under two years, which helps minimize sensitivity to changes in global interest rates. This allows the strategy to adapt more quickly to evolving macroeconomic conditions and reinvest capital at updated yield levels. To enhance income potential, the fund uses leverage of up to two times the portfolio value. This leverage is applied within defined risk controls to amplify returns from the underlying bond holdings while maintaining a stable risk profile. Finally, liquidity management is integrated into the construction process. The fund prioritizes securities that trade actively in the market, allowing the portfolio to support its weekly liquidity feature while retaining the flexibility to rebalance positions as market opportunities change.