Asset Management

Vontobel launches two sustainable bond funds

Vontobel is expanding its suite of ESG bond funds with two new products—an impact green bond fund and a sustainable emerging markets debt fund—to meet growing investor demand for solutions that combine the goal of providing attractive income with a sustainable approach.

The Vontobel Fund - Green Bond invests across a global universe of green bonds, identifying issuers who use proceeds mainly for eligible environmental projects with a measurable impact in the transition to a low-carbon economy. The fund aims to maximize the contribution to climate change mitigation and environmental protection, while generating steady income over a full economic cycle. Under SFDR regulations the fund qualifies as an article 9 fund.

Supported by a team of more than 40 investment and ESG specialists, Portfolio Managers Daniel Karnaus and Anna Holzgang make high-conviction decisions based on in-depth analysis of credit quality, green bond projects, relative-value and macro factors. The Fund follows a disciplined investment process, whereby only a select number of green bonds are eligible for investment, resulting in a concentrated portfolio.

“Climate change is a real financial risk for investors, and green bonds provide an effective tool to address it,” says Daniel Karnaus, Portfolio Manager. “The fund’s impact is also measurable. For every 1 million euro invested in the fund, we estimate that we reduce carbon emissions equivalent to 492 t CO2 equivalent, or about 206 fewer passenger cars on the streets per annum.”

The Vontobel Fund - Sustainable Emerging Markets Debt invests mainly in government, quasi-sovereign and corporate bonds that demonstrate an ability to manage resources efficiently, as well as managing ESG risks. To find attractive opportunities, a proprietary ESG scoring model, based on a best-in-class inclusion as well as sectoral exclusion, is at the core of the investment process. Under SFDR regulations, the fund qualifies as an article 8 fund.

Supported by a team of nine emerging markets analysts and three ESG specialists, Portfolio Manager, Sergey Goncharov, focuses on optimizing the level of spread for a given level of risk. Utilizing an 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.

“As fixed income investors, a key part of our toolkit is our engagement with issuers,” asserts Sergey Goncharov, Portfolio Manager. “Engagement is extremely powerful in filling information gaps, particularly in emerging markets, where companies and countries may be terms less advanced in of ESG. A simple conversation can raise awareness and promote the importance of considering ESG risks among new issuers.”

Vontobel has been offering fixed income solutions since 1988. Its Fixed Income Boutique manages CHF 24bn in client assets across Global Credit, Global Bonds, Emerging Markets and Flexible Strategies. The Fixed Income team consists of over 40 investment professionals located in Zurich, New York and Hong Kong.

Vontobel Fund - Green Bond  
Fund domicile Luxembourg
Fund currency EUR
Fund manager Daniel Karnaus
Management fee in % p.a. I share class: 0.33% (Institutional share class)
ISIN I EUR: LU0278087357

 

Vontobel Fund - Sustainable Emerging Markets Debt  
Fund domicile Luxembourg
Fund currency USD
Fund manager Sergey Goncharov
Management fee in % p.a. I share class: 0.63% (Institutional share class)
ISIN I USD: LU2145396086

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, LU, ES, FR and IT.

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”).

Interested parties may obtain the above-mentioned documents free of charge from the authorized distribution agencies and from the offices of the fund at 11-13 Boulevard de la Foire, L-1528 Luxembourg, 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 Germany: B. Metzler seel. Sohn & Co. KGaA, Untermainanlage 1, 60311 Frankfurt/Main, the paying agent in Austria Erste Bank der oesterreichischen Sparkassen AG, Graben 21, A-1010 Vienna. 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]

The KIID is available in French. The fund is authorized to the commercialization in France. Refer for more information on the funds to the Document d’Information Clé pour l’Investisseur (DICI).

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]

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Isabel Reck

Media Relations UK, Italy, Spain & Hong Kong

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Seraina Benz

Media Relations Switzerland, Germany & France

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Catherine Koch

Media Relations U.S., Canada & Americas

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