Swiss & Global AM unveils JB EM Corporate Bond fund
Swiss & Global Asset Management has launched the JB Emerging Markets Corporate bond fund, which allows investors to diversify fixed income allocation through corporate bonds from issuers in emerging markets.
According to the company, this can provide substantially higher yields and better fundamentals than comparable corporate bonds issued in the developed world.
The fund is designed for investors looking for diversification from the traditional corporate fixed income universe. It will be initially available in Italy, Germany and UK.
It will combine proprietary fundamental top down and extensive bottom up analysis to identify the most attractive investment opportunities. Key factors in the bottom-up analysis include company strategy, corporate governance, sector outlook, note structure and covenants.
Country, industry and issuer weightings, as well as duration and curve selection decisions, are based on absolute and relative value analysis. Robust risk management, for example position size limits, will minimise exposure to idiosyncratic company risk.
“The emerging market corporate bond market now stands at around $1tr of assets and covers 38 countries including Brazil, Russia, Hong Kong and China. Three quarters of the market is investment grade paper and the average credit rating is BBB+,” Swiss & Global said.
The fund will be managed by Enzo Puntillo, Dorthe Fredsgaard Nielsen and Tania Minella.
It builds on Swiss & Global’s proven fixed income investment process and expertise, and complements its existing fund range, which includes relative and absolute return strategies, hard currency and local currency investments, as well as a dedicated inflation linked product.