Asset manager Vontobel has launched an emerging market fund investing in corporate bonds with maturities of five years.
The firm said it was responding to investor demand for income with a predictable credit and duration risk trajectory.
The Vontobel Fund II - Fixed Maturity Emerging Markets Corporate Bond 2026 invests mainly in short and mid-maturity emerging market corporate bonds. The fund aims for an average investment-grade rating and a target yield to maturity of 4.7%.
Vontobel's emerging market fixed income team manages the fund and is supported by ESG analysts. The fund excludes a range of sectors due to ESG factors and is designated Article 6 based on the EU SFDR classification.
“With a predetermined maturity date, the fund’s volatility, credit and duration risk reduces over time,” says Sergey Goncharov, portfolio manager. “This allows investors to participate in emerging markets' above-average yield opportunities with diminishing risks over the fund's life span, with the prospect of capital repayment at a fixed date.”
© 2021 funds europe