The Vontobel Fund II - Fixed Maturity Emerging Markets Corporate Bond 2026 invests mainly in short and mid-maturity emerging market corporate bonds. The fund has a fixed maturity of five years aiming for an average investment-grade rating and a target yield to maturity of 4.7%.
Building on several years of experience in fixed maturity bond management, Vontobel's emerging market fixed income team manages the fund, supported by ESG analysts. The fund focuses on optimizing the level of spread for a given level of risk. Using in-depth research and a proprietary valuation model, the team compares the risk vs. return potential across issuer qualities, countries, interest rates, currencies, and maturities within their investment universe to identify the most rewarding opportunities. The fund excludes a range of sectors due to ESG concerns and is designated Article 6 based on the 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.”
“In an ongoing low rate environment, clients seek solutions that can meet the need for a higher yield, without taking on unnecessary risk. The launch of this fund demonstrates our ongoing commitment to leveraging our proven emerging market fixed income expertise to construct innovative solutions that meet the evolving needs of our clients,” says Rémi Casals, Global Head of Fixed Income Business.
|Vontobel Fund II – Fixed Maturity Emerging Markets Corporate Bond 2026|
|Fund manager||Sergey Goncharov|
|Management fee in % p.a.||I share class: 0.35% (Institutional share class)|
|ISIN||I EUR: LU0278087357|
|Seeding period||September 6 – November 9, 2021|
|Launch date||November 9, 2021|
|Maturity date||October 30, 2026|
At Vontobel, we actively shape the future. We create and pursue opportunities with determination. We master what we do – and we only do what we master. This is how we get our clients ahead. As a globally active investment manager with Swiss roots, we specialize in wealth management, active asset management and investment solutions. We harness the power of technology to deliver a high-quality, individual client experience and to deploy our investment expertise across multiple platforms and ecosystems. We empower our employees to take ownership of their work and bring opportunities to life. We do so based on the conviction that successful investing begins with the assumption of personal responsibility. We continuously scrutinize our achievements as we strive to exceed the expectations of our clients. The registered shares of the Vontobel Holding AG are listed on the SIX Swiss Exchange. The Vontobel families' close ties to the company guarantee our entrepreneurial independence. We consider the resulting freedom as an obligation to also assume our social responsibility. As of June 30, 2020, Vontobel held CHF 280.2 billion of total client assets. Around the world and in our home market, we serve our clients from 26 locations.
Important legal information
This marketing document was produced by one or more companies of the Vontobel Group (collectively "Vontobel") for institutional clients, for distribution in AT, CH, DE, FR, LU, ES, GB, IT and SG (Professional Investors only).
This document is for information purposes only and does not constitute an offer, solicitation or recommendation to buy or sell shares of the fund/fund units or any investment instruments, to effect any transactions or to conclude any legal act of any kind whatsoever. Subscriptions of shares of the fund should in any event be made solely on the basis of the fund’s current sales prospectus (the “Sales Prospectus”), the Key Investor Information Document (“KIID”), its articles of incorporation and the most recent annual and semi-annual report of the fund and after seeking the advice of an independent finance, legal, accounting and tax specialist. This document is directed only at recipients who are institutional clients, such as eligible counterparties or professional clients as defined by the Markets in Financial Instruments Directive 2014/65/EC (“MiFID”) or similar regulations in other jurisdictions, or as qualified investors as defined by Switzerland’s Collective Investment Schemes Act (“CISA”).
The investments underlying this Sub-Fund do not take into account the EU criteria for environmentally sustainable economic activities. The Sub-Fund has recourse to both internal and external ESG research and integrates financially material Sustainability Risks into its investment decision-making processes. While no asset is excluded from investment due solely to Sustainability Risks the Investment Manager must conclude that any risk revealed, including Sustainability Risks, as part of the ESG research are adequately compensated by the assets expected return.
The Sustainability Risks that the Sub-Fund may be subject to are likely to have a low impact on the value of the Sub-Funds’ investments in the medium to long term due to the mitigating nature of the Sub-Funds’ ESG approach.
It has a limited duration and is designed to be terminated on 30 October 2026 (the "Maturity").
The sub-fund may use derivatives to achieve the investment objective and for hedging purposes. Currency, credit and interest rate risks may be actively managed through the use of derivative financial instruments.
Securities with a lower credit quality means a higher risk that an issuer may fail to meet its obligations. The investment value may fall if an issuer's credit rating is downgraded.
Using derivatives generally creates leverage and entails valuation risks and operational risks. Leverage magnifies gains but also losses. Over-the-counter derivatives involve corresponding counterparty risks.
Asset-backed and mortgage-backed securities and their underlying receivables are often non-transparent. The sub-fund may also be subject to a higher credit and/or prepayment risk.
CoCo-Bonds may entail significant risks such as coupon cancellation risk, capital structure inversion risk, call extension risk.
Distressed securities have a high credit and liquidity risk as well as a potential restructuring and litigation risk. In the worst case, a total loss may result.
Investments in emerging markets entail increased liquidity and operational risks as these markets tend to be underdeveloped and more exposed to political, legal, tax and foreign exchange control risks.
Past performance is not a reliable indicator of current or future performance. Performance data does not take into account any commissions and costs charged when shares of the fund are issued and redeemed, if applicable. The return of the fund may go down as well as up, e.g. due to changes in rates of exchange between currencies. The value of the money invested in the fund can increase or decrease and there is no guarantee that all or part of your invested capital can be redeemed.
Interested parties may obtain the above-mentioned documents free of charge from the representative in Switzerland: Vontobel Fonds Services AG, Gotthardstrasse 43, 8022 Zurich, the paying agent in Switzerland: Bank Vontobel AG, Gotthardstrasse 43, 8022 Zurich , the paying agent in Austria: Erste Bank der oesterreichischen Sparkassen AG, Graben 21, A-1010 Vienna, the paying agent in Germany: LBBW Landesbank Baden-Württemberg, Große Bleiche 54-56, 55116 Mainz, the paying agent in France: Société Générale Securities Services Tour Granite 17, cours Valmy Paris La Défense 7, 75886 Paris Cedex 18, France, from the authorized distribution agencies and from the offices of the fund at 11-13 Boulevard de la Foire, L-1528 Luxembourg. Refer for more information on the fund to the latest prospectus, annual and semi-annual reports as well as the key investor information documents (“KIID”). These documents may also be downloaded from our website at vontobel.com/am.
Refer for more information regarding subscriptions in Italy to the Modulo di Sottoscrizione. For any further information: Vontobel Asset Management S.A., Milan Branch, Piazza degli Affari 2, 20123 Milano, telefono: 0263673444, e-mail [email protected]
In Spain, funds authorized for distribution are recorded in the register of foreign collective investment companies maintained by the Spanish CNMV (under number 280). The KIID can be obtained in Spanish from Vontobel Asset Management S.A., Spain Branch, Paseo de la Castellana, 95, Planta 18, E-28046 Madrid or electronically from [email protected]
The fund authorised for distribution in the United Kingdom and entered into the UK’s temporary marketing permissions regime can be viewed in the FCA register under the Scheme Reference Number 466625. The fund is authorised as a UCITS scheme (or is a sub fund of a UCITS scheme) in a European Economic Area (EEA) country, and the scheme is expected to remain authorised as a UCITS while it is in the temporary marketing permissions regime. This information was approved by Vontobel Asset Management SA, London Branch, which has its registered office at 3rd Floor, 70 Conduit Street, London W1S 2GF and is authorized by the Commission de Surveillance du Secteur Financier (CSSF) and subject to limited regulation by the Financial Conduct Authority (FCA). Details about the extent of regulation by the FCA are available from Vontobel Asset Management SA, London Branch, on request. The KIID can be obtained in English from Vontobel Asset Management SA, London Branch, 3rd Floor, 70 Conduit Street, London W1S 2GF or downloaded from our website vontobel.com/am.
The fund and its subfunds are not available to retail investors in Singapore. Selected subfunds of the fund are currently recognized as restricted schemes by the Monetary Authority of Singapore. These subfunds may only be offered to certain prescribed persons on certain conditions as provided in the “Securities and Futures Act”, Chapter 289 of Singapore.
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