Vontobel has launched a year fixed maturity emerging market bond fund, enabling investors to “capitalise on higher yields through a three-year segment of emerging market bonds in hard currencies”.
A growing universe of emerging market debt
Mainly investing in emerging market bonds in hard currencies, the Vontobel Fund II – Fixed Maturity Emerging Markets Bond 2 seeks to offer “a higher spread, yield and coupon relative to comparable bonds in developed markets”.
Additionally, it aims for an average investment-grade rating and a target yield to maturity of 7%, depending on market evolution.
FundsTech conference to take place in April
The seeding period for the fund began on April 2, 2024, and will last until May 14, 2024. “Choosing a three-year maturity aligns with current market conditions, which are favourable for emerging market bonds. With an expected downward trend in US interest rates, investors have the opportunity for an attractive risk-return ratio over a fixed time horizon, locking in higher yields,” says Sergey Goncharov, portfolio manager.
The fund is registered for distribution in Austria, France, Germany, Liechtenstein, Luxembourg, Switzerland, the UK, Italy and Spain.
