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CODO

WisdomTree AT1 CoCo Bond UCITS ETF - USD Hedged

The Fund seeks to track the performance, before fees and expenses of iBoxx Contingent Convertible Liquid Developed Europe AT1 Index USD Hedged (the “Index”). Learn more about the Index that CODO is designed to track.

  

Why invest?

  • Diversified exposure to AT1 CoCos
  • The Fund Invests in CoCos which are rated, backed by developed Europe financial institutions and screened for liquidity 
  • Offers a unique yield, return and risk profile
  • Physically replicated, and UCITS compliant

Potential Risks

  • CoCos can be converted into equity of the issuing financial institution or have their principal written down. This may result in your investment losing some or all of the original investment amount
  • The behaviour of the relatively new CoCo bond market has not been tested in a systemic financial crisis, thus the price and liquidity of CoCos may degrade under such circumstances. Past performance is therefore not a suitable indicator of future performance
  • Coupon payments on some CoCos are entirely discretionary and can be cancelled. As a result of this uncertainty around coupon payments, CoCo products may be more volatile, and their price may rapidly decline in the event that coupon payments are suspended. Some CoCos may be callable bonds, which means that such callable bonds can be redeemed by the issuer prior to the bond's maturity. This may result in the investor not receiving the invested capital back on the specified call date or at any date at all. Some CoCos are issued as perpetual instruments and only callable at predetermined levels upon approval of the competent regulatory authority. It cannot be assumed that these perpetual CoCos will be called on a call date. CoCos are a form of permanent capital. The investor may not receive return of principal as expected on call date or indeed at any date
  • This list does not cover all risks. Further risks are disclosed in the KIID and Prospectus & Communications Surveillance

RISK WARNING

The price of any Shares or the value of an investment in ETPs may go up or down and an investor may not get back the amount invested. Past performance is not a reliable indicator of future performance. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any financial instrument or product or to adopt any investment strategy.

Fund Overview
Asset Class Fixed Income
Use of Income Distributing
Base Currency USD
Inception Date 21 Aug 2018
Dividend Frequency Semi-Annually
Exchange Ticker CODO
Index Name iBoxx Contingent Convertible Liquid Developed Europe AT1 Index (USD Hedged)
TER 0.50%
Net Asset Value 19 Nov 2018
NAV $98.26
Daily Change -$0.76
Daily Return -0.76%
Total AUM of fund $38,591,344.30
Structure
Legal Form Plc
Fund Umbrella WisdomTree Issuer Plc
Domicile Ireland
Structure Open-ended Exchange Traded Fund
Replication Method Physical (optimised)
Financial Year End 31 December
UCITS Compliant Compliant
Key Service Providers
Custodian State Street Custodial Services (Ireland) Limited
Administrator State Street Fund Services (Ireland) Limited
Fund Manager Assenagon Asset Management S.A
Trustee State Street Custodial Services (Ireland) Limited
Auditor Ernst & Young Ireland
Registered Countries
Finland
France
Germany
Ireland
Italy
Luxembourg
Netherlands
Sweden
United Kingdom

Listings & Codes

Listings & Codes

Holdings

As of 19 Nov 2018
*Holdings are subject to change without notice.

Issuer Breakdown

As of 19 Nov 2018
*Sectors are subject to change without notice

Country Allocation

Country Allocation
Country
19 Nov 2018
Weight
1. United Kingdom 30.45%
2. France 15.79%
3. Switzerland 14.85%
4. Spain 13.85%
5. Netherlands 7.61%
6. Italy 6.23%
7. Germany 3.20%
8. Sweden 2.60%
9. Belgium 2.21%
10. Denmark 2.15%
11. Norway 1.05%

Recent Distributions

Recent Distributions
There have been no recent distributions for this fund.
Index Details
The Index is designed to reflect the performance of the Additional Tier 1 (“AT1”) CoCos denominated in EUR, USD and GBP issued by financial institutions from European developed markets. AT1 follows the classification of bank capital laid out in Basel III[1] principles. The Index rules aim to offer a good coverage of the CoCo bond universe whilst upholding standards of investability and liquidity. The Index is market value-weighted, and rebalanced monthly.

Index Details

Index Details
Index Name iBoxx Contingent Convertible Liquid Developed Europe AT1 Index USD Hedged
Currency USD
Index Provider WisdomTree
Bloomberg Ticker IBXXCCL2
Leverage Factor N/A

Collateral Details

Collateral Details 19 Nov 2018
Collateralised Collateral not required
Over Collateralised Collateral not required
Custodian State Street Custodial Services (Ireland) Limited

Collateral Structure

Currency Hedging and Counterparty Risk Management

 

Some share classes of this Fund offer currency hedged exposure. These share classes obtain their currency hedged exposure by entering into foreign exchange (FX) forward contracts with one or more counterparties (the “Counterparty”).

 

Counterparty risk resulting from the Fund’s currency hedging activities is managed through the daily delivery of collateral by the Counterparty to the Fund. 

 

Daily Marked-to-Market

 

The value of the collateral required from the Counterparty is based on the Fund’s counterparty exposure, which is marked-to-market daily. Collateral may be exchanged daily [subject to a minimum transfer amount of USD 50,000. 

 

Eligible Assets

 

The assets posted as collateral by the Counterparty is of a high quality and may only include cash (US Dollars only) or government bonds of US, UK, France or Germany, with a minimum rating of AA-/Aa3 (“eligible collateral assets”). 

 

Haircuts

 

When valuing bonds posted as collateral, a haircut is applied to each bond's value based on the issuing country and the bond's maturity, as specified in the following table. Applying a haircut to the value of eligible collateral typically results in the collateral value exceeding the counterparty exposure and in any exposure being “over-collateralised”.

 

Haircuts / Over-Collateralisation Applied to Collateral Securities

 

 

Transparency

 

The up-to-date exact collateral composition delivered by the Fund’s counterparties is available to view on our website.

DISCLAIMERS

 

“WisdomTree” is a registered trademark of WisdomTree Investments, Inc. Neither the Company, the Manager, the Investment Manager, WisdomTree nor their affiliates guarantee the accuracy or the completeness of the Index or any data included therein and shall have no liability for any errors, omissions or interruptions therein. Such parties make no warranty, express or implied, to the owners of Shares of the Fund or to any other person or entity, as to results to be obtained by the Fund from the use of the Index or any data included therein. Without limiting any of the foregoing, in no event shall such parties have any liability for any special, punitive, direct, indirect or consequential damages (including lost profits), even if notified of the possibility of such damages.

 

The Company is required to provide details of WisdomTree’s website to enable Shareholders to obtain further details of the Index (including its constituents). Neither the Company, the Manager nor the Investment Manager has any responsibility for the contents of such website and are not involved in any way in sponsoring, endorsing or otherwise involved in the establishment, maintenance or contents of the website.

 

The iBoxx Contingent Convertible Liquid Developed Europe AT1 Index (the “Index”) referenced herein is the property of the Markit Indices Limited (“Index Sponsor”) and has been licensed for use in connection with WisdomTree Europe AT1 Contingent Convertible UCITS ETF. Each party acknowledges and agrees that WisdomTree Europe AT1 Contingent Convertible UCITS ETF is not sponsored, endorsed or promoted by the Index Sponsor.  The Index Sponsor make no representation whatsoever, whether express or implied, and hereby expressly disclaim all warranties (including, without limitation, those of merchantability or fitness for a particular purpose or use), with respect to the Index or any data included therein or relating thereto, and in particular disclaim any warranty either as to the quality, accuracy and/or completeness of the Index or any data included therein, the results obtained from the use of the Index and/or the composition of the Index at any particular time on any particular date or otherwise and/or the creditworthiness of any entity, or the likelihood of the occurrence of a credit event or similar event (however defined) with respect to an obligation, in the Index at any particular time on any particular date or otherwise.  The Index Sponsor shall not be liable (whether in negligence or otherwise) to the parties or any other person for any error in the Index, and the Index Sponsor is under no obligation to advise the parties or any person of any error therein.  

The Index Sponsor makes no representation whatsoever, whether express or implied, as to the advisability of purchasing or selling WisdomTree Europe AT1 Contingent Convertible UCITS ETF, the ability of the Index to track relevant markets’ performances, or otherwise relating to the Index or any transaction or product with respect thereto, or of assuming any risks in connection therewith. The Index Sponsor has no obligation to take the needs of any party into consideration in determining, composing or calculating the Index. No party purchasing or selling WisdomTree Europe AT1 Contingent Convertible UCITS ETF, nor the Index Sponsor, shall have any liability to any party for any act or failure to act by the Index Sponsor in connection with the determination, adjustment, calculation or maintenance of the Index.  The Index Sponsor and its affiliates may deal in any obligations that compose the Index, and may, where permitted, accept deposits from, make loans or otherwise extend credit to, and generally engage in any kind of commercial or investment banking or other business with the issuers of such obligations or their affiliates, and may act with respect to such business as if the Index did not exist, regardless of whether such action might adversely affect the Index or WisdomTree Europe AT1 Contingent Convertible UCITS ETF.

Neither Markit, its Affiliates or any third-party data provider makes any warranty, express or implied, as to the accuracy, completeness or timeliness of the data contained herewith nor as to the results to be obtained by recipients of the data.  Neither Markit, its Affiliates nor any data provider shall in any way be liable to any recipient of the data for any inaccuracies, errors or omissions in the Markit data, regardless of cause, or for any damages (whether direct or indirect) resulting therefrom.

Markit has no obligation to update, modify or amend the data or to otherwise notify a recipient thereof in the event that any matter stated herein changes or subsequently becomes inaccurate. 

Without limiting the foregoing, Markit, its Affiliates, or any third party data provider shall have no liability whatsoever to you, whether in contract (including under an indemnity), in tort (including negligence), under a warranty, under statute or otherwise, in respect of any loss or damage suffered by you as a result of or in connection with any opinions, recommendations, forecasts, judgments, or any other conclusions, or any course of action determined, by you or any third party, whether or not based on the content, information or materials contained herein.