Union launches two emerging market funds
Union Investment has announced the launch of two new bond funds, the UniEuroRenta Unternehmensanleihen EM 2021 offering access to emerging market corporate bonds and the UniEuroRenta EM 2021 offering access to emerging market sovereign bonds.
The corporate bond fund invests chiefly in emerging but provides the opportunity to stabilise the portfolio through additionnal investments of up to 35% in developed markets.
The sovereign bond fund focusses on governments and government affiliated companies in emerging markets while up to 30% can be invested in interest bearing securities of former emerging markets such as Singapore and Hong Kong or high yield and junior securities.
Both funds offer only euro or dollar denominated bonds and expire in December 2021, with an earlier exit being available against an additional fee of 1%.