Zurich-based Fisch Asset Management has launched an investment grade bond fund that may also take a limited position in riskier high yield bonds.
The Fisch Bond Global IG Corporates Fund, launched at the end of April, invests globally in high-quality companies but can opportunistically put up to 10% of its assets in high yield bonds.
Fisch launched a similar fund - Fisch Bond Global Corporates Fund – in 2014 that invests in more regions and in bonds of lower ratings than investment grade.
High yield segments that may be targeted include ‘rising star’ investments - companies that portfolio managers expect to be upgraded to the investment grade segment in the near future.
Maria Staeheli (pictured) and Oliver Reinhard, senior portfolio managers, run the fund and use relative value as a performance driver – meaning the relative attractiveness of bonds taking into account credit quality and capital structure, among other factors such as ESG.
Staeheli said corporate bonds were less volatile than government bonds as a result of the negative correlation between risk premiums and interest rates, and that the corporate market was worth €10 trillion.