Swiss & Global expands EM bond funds range
Swiss & Global Asset Management has expanded the range of emerging market bond funds with the launch of the JB Emerging Markets Investment Grade Bond Fund.
The fund allows investors to diversify their fixed income allocation through a geographically varied range of investment-grade hard currency bonds from issuers in emerging markets.
The lead fund manager will be Enzo Puntillo, head fixed income emerging markets and the fund will benchmark its performance against the JP Morgan Emerging Markets Bond Index Global Diversified Investment Grade.
The fund will follow a disciplined active investment approach based on specialist in-house tools and research. Fundamental and valuation analysis will be used to determine country selection and portfolio positioning.
The fund will take overweight / underweight country positions based on assessment of countries’ fundamental framework and market valuations. The fund’s initial positioning will be overweight in the Central & Eastern European Region, while underweighting Latin America, Asian and African regions.
Swiss & Global launched its first emerging market fund in 1997 and now offers a range of emerging market bond funds in both hard and local currency, covering both corporate and government debt.
“This product is a diversifier from ‘traditional bonds’. It is a particularly useful allocation tool for investors looking for exposure to countries with strong fundamentals and low debt levels, but who want to maintain their exposure to bonds with high quality ratings. Swiss & Global is a pioneer in emerging market investments and with the launch of this fund we now offer investors a complete suite of emerging market debt options,” Puntillo said.
He added: “With investors struggling to find yield, exposure to emerging market debt is essential. Emerging market Investment Grade bonds offer yields of around 3.4%, an attractive level considering the current environment of low nominal and negative real yields. This fund helps investors to access emerging market growth story while maintaining the rating quality of their allocation.”