Swiss & Global offers new share class for JB Emerging Markets Inflation Linked Bond Fund
Swiss & Global has launched a new sterling share class for its Julius Baer Emerging Markets Inflation Linked Bond Fund. The shares will distribute monthly and provide investors with more flexible access to strong real yields in the current low yield environment. The shares are available for discretionary wealth management firms, as well as institutional investors.
The JB Emerging Markets Inflation Linked Bond Fund has delivered positive performance since its launch in December 2010. The fund is currently yielding 6.8% and returned +19.11% in 2012.
Local emerging market inflation linked bond markets have grown rapidly in recent years, comprising around 25% of all inflation linked bonds currently outstanding, the firm said.
Contrary to the developed world, some emerging markets face considerable inflationary pressures resulting from structural factors. The fund offers protection against these influences while allowing investors to benefit from the high real rates and currency appreciation that emerging markets offer.
It operates on a fundamental valuation approach, taking active exposure to interest rates and currencies in emerging markets. It was one of the first funds to offer pure exposure to this asset class.
Keith Rumbelow, head of UK Sales, Swiss & Global Asset Management said the launch of the sterling share class will provide investors with increased opportunity to buy into an asset class that offers attractive real returns and protection against rising inflation rates.
Enzo Puntillo, head of Fixed Income Emerging Markets and fund manager of the JB Emerging Markets Inflation Linked Bond Fund, noted that yields for many tradi¬tional safe haven assets have fallen below the current inflation rate.
“For investors that wish to diversify their global fixed income portfolio in their search for yield, emerging market inflation linked bonds offer real long term returns. The gross yield currently stands at 6.8%, providing investors with more immediate access to attractive income levels, supported by solid debt fundamentals.”
The GBP currency share classes are hedged against the base currency of US dollars. C and Cm shares are available for institutional investors only.
Swiss & Global Asset Management emerged from Julius Baer Asset Management in October 2009 and is the exclusive manager of Julius Baer funds. Swiss & Global is a company of the GAM Holding which is listed on the SIX Swiss Exchange.