The recent poor run for emerging market assets has not stopped Swiss & Global Asset Management launching a new fund investing in hard and local currency bonds in emerging markets.
The JB Emerging Markets Opportunities Bond Fund aims for a return of 6-10% and can invest in government and corporate bonds. It is not tied to a benchmark and may employ inflation hedging.
“We focus on countries where changing fundamentals are not yet fully reflected in bond valuations,” says Enzo Puntillo, head of fixed income emerging markets, Swiss & Global Asset Management. “The opportunities and risks of emerging markets change over time, and both fundamental data and valuations can create earnings drivers for EM bonds.”
The firm says the fund currently has large local currency positions in Brazil, Mexico and Poland and hard currency positions in Indonesian and eastern European government bonds.
The Luxembourg-domiciled fund is denominated in dollars and charges a management fee of 1.1%.
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