This bond fund aims to generate the best possible investment returns over a full economic cycle and seeks to promote environmental or social practices while respecting risk diversification.
The fund invests across emerging markets mainly in government bonds with different maturities in various local currencies from issuers of diverse qualities that seek to promote environmental or social practices. The fund uses derivative financial instruments both for hedging purposes and to gain selective exposures to interest rates and currencies.
The compact and agile investment team of experienced specialists defines the investment universe by using a proprietary sustainability model, which filters out sustainable government bond issuers by combining both exclusion and inclusion screenings. To identify investment opportunities generated by country-specific mispricing, the team continuously assesses market conditions and outlook, based on in-depth macro-economic, technical and valuation analyses. Accordingly, they allocate interest rate and currency risks and select those securities and instruments within the investment universe whose yield and/or hedging values convince them the most. The team flexibly adapts the portfolio to seize attractive opportunities whenever they occur.
"In addition to providing returns, when a country improves its sustainability metrics, it will probably result in avoiding drawdowns and increased volatility."
We apply a four-step process, which combines top-down strategic themes and bottom-up analysis to generate returns.
The process includes adherence to sustainability criteria, such as excluding issuers from countries classified as “not free” by the non-governmental organization Freedom House.
The emerging market investment universe consists of around 90 countries spread across the globe, of which around 50 have an investable local-debt market.
For many other managers, their “neutral” position is based on the benchmark, our portfolio, however, is a conviction-weighted portfolio.
We view the emerging debt markets as inefficient. These inefficiencies create opportunities for an active manager. In local currency bonds (debt denominated in the currency of the bond’s issuer), the inefficiencies are mainly structural, constraint-driven and governance related. By identifying and analyzing these inefficiencies, we aim to find opportunities that will deliver long-term performance.
We see sustainability as an important driver of long-term returns, a country that strives to improve governance sustainability (the strength of its institutions, more freedom, and democracy in the system etc.), will eventually present investors with more sustainable economic growth. Improving sustainability delivers predictability and stability, thus avoiding drawdowns and volatility.
Segmented markets and risk aversion offer high return, low volatility and decorrelated opportunities. Our investment philosophy rests on two inefficiencies and sources of performance:
Senior Portfolio Managers Thierry Larose and Carl Vermassen of the Vontobel Emerging Market Bonds team manage the fund. The team also has at its disposal the full capabilities of the wider Zurich-based Fixed Income Boutique. This optimal team structure enables proactive early idea generation and implementation.
All data is as at 31 Jan 2026 unless otherwise indicated.
| 1M | YTD | 1Y | 3 yrs p.a. | 5 yrs p.a. | Since Inception | |
|---|---|---|---|---|---|---|
| B USD | 2.1% | 2.1% | 19.7% | 8.3% | 2.4% | 16.5% |
| Index | 2.2% | 2.2% | 19.4% | 8.7% | 1.8% | 26.3% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|---|
| B USD | 19.7% | -4.1% | 13.5% | -8.4% | -8.8% | 7.6% | 8.8% | -8.2% | 12.1% | 10.6% |
| Index | 19.3% | -2.4% | 12.7% | -11.7% | -8.7% | 2.7% | 13.5% | -6.2% | 15.2% | 9.9% |
| Portfolio | Index | |||||||
|---|---|---|---|---|---|---|---|---|
| Volatility | 8.5% | 8.0% | ||||||
| Sharpe Ratio | 0.3 | |||||||
| Information Ratio | negative | |||||||
| Tracking error | 1.1% | |||||||
| Modified Duration | 4.2 | 5.3 | ||||||
| Yield To Maturity | 7.5% | 6.1% | ||||||
| Average Rating | A- | BBB+ | ||||||
| Number of positions | 81.0 | 439.0 | ||||||
| Active Share (country, issuer, ISIN) | 45% / 47% / 83% | |||||||
| [3 years annualized] | ||||||||
All data is as at 5 Mar 2026 unless otherwise indicated.
| Portfolio Manager | Thierry Larose/Carl Vermassen |
|---|---|
| Fund Domicile | Luxembourg |
| Fund Currency | USD |
| Share Class Currency | USD |
| Risk Level | 4.00 (28 Jan 2026) |
| Year End | 31 August |
| Index | J.P. Morgan GBI-EM Global Diversified Composite USD |
| Share Class Launch Date | 25 Jan 2011 |
| Distribution Type | Accumulating |
| Swing Pricing | Yes |
| SFDR Classification | Article 8 |
| Fund Registrations | AT, CH, DE, DK, ES, FI, FR, GB, IT, LI, LU, NL, NO, PT, SE, SG |
| Share Class Registrations | AT, CH, DE, ES, FI, GB, IT, LI, LU, NO, PT, SE, SG |
| Highest since launch | 118.08 |
|---|---|
| Lowest since launch | 75.59 |
| Fund size in mln. | USD 373.56 |
| Share class size in mln. | USD 8.51 |
| Management Fee | 1.20% |
|---|---|
| Max Management Fee | 1.25% |
| TER* | 1.57% (29 Aug 2025) |
| OCF | 1.57% (31 Aug 2025) |
| Luxembourg Taxe d Abonnement | 0.05% |
| ISIN | LU0563307718 |
|---|---|
| CUSIP | L967A5823 |
| Valor | 12061801 |
| Bloomberg | VONEMBB LX |
| SEDOL | B7355Q1 |
| WKN | A1H45N |
| Investment Manager | Vontobel Asset Management AG, Zürich |
|---|---|
| Depositary | State Street Bank International GmbH (Luxembourg Branch) |
| Management Company | Vontobel Asset Management SA, Luxembourg |
| Swiss Paying Agent | Bank Vontobel AG |
| Swiss Representative | Vontobel Fonds Services AG |
| Share class | Currency | ISIN | Distrib. | Type | Launch date | Management Fee | TER* |
|---|---|---|---|---|---|---|---|
| A | USD | LU0563307551 | Distributing | Retail | 25 Jan 2011 | 1.20% | 1.57% (29 Aug 2025) |
| AM | USD | LU0563307635 | Distributing | Retail | 25 Jun 2012 | 1.60% | 1.97% (29 Aug 2025) |
| AN | USD | LU1683487208 | Distributing | Retail | 11 Oct 2017 | 0.60% | 0.95% (29 Aug 2025) |
| B | CHF | LU0752070267 | Accumulating | Retail | 12 Mar 2012 | 1.20% | 1.57% (29 Aug 2025) |
| B | EUR | LU0752071745 | Accumulating | Retail | 12 Mar 2012 | 1.20% | 1.57% (29 Aug 2025) |
| B | USD | LU0563307718 | Accumulating | Retail | 25 Jan 2011 | 1.20% | 1.57% (29 Aug 2025) |
| C | USD | LU0563307809 | Accumulating | Retail | 25 Jan 2011 | 1.60% | 1.97% (29 Aug 2025) |
| G | USD | LU2550874106 | Accumulating | Institutional | 21 Nov 2022 | 0.45% | 0.76% (29 Aug 2025) |
| H (hedged) | CHF | LU0563308369 | Accumulating | Retail | 18 Jan 2011 | 1.20% | 1.60% (29 Aug 2025) |
| H (hedged) | EUR | LU0563308443 | Accumulating | Retail | 25 Jan 2011 | 1.20% | 1.60% (29 Aug 2025) |
| HI (hedged) | CHF | LU0563308799 | Accumulating | Institutional | 16 Mar 2011 | 0.60% | 0.94% (29 Aug 2025) |
| HI (hedged) | EUR | LU0563308872 | Accumulating | Institutional | 10 Apr 2014 | 0.60% | 0.94% (29 Aug 2025) |
| HN (hedged) | CHF | LU1683483470 | Accumulating | Retail | 5 Oct 2017 | 0.60% | 0.98% (29 Aug 2025) |
| HN (hedged) | EUR | LU1683487380 | Accumulating | Retail | 12 Oct 2017 | 0.60% | 0.98% (29 Aug 2025) |
| I | USD | LU0563307981 | Accumulating | Institutional | 25 Jan 2011 | 0.60% | 0.91% (29 Aug 2025) |
| N | USD | LU1683483124 | Accumulating | Retail | 5 Oct 2017 | 0.60% | 0.95% (29 Aug 2025) |
Subject to change, without notice, only the current prospectus or comparable document of the fund is legally binding.
* TER includes performance fee where applicable
All data is as at 31 Jan 2026 unless otherwise indicated.
View all documents View latest documents
| Document | Date | DE | EN | ES | FR | IT |
|---|---|---|---|---|---|---|
| Factsheets & Commentaries | ||||||
| Factsheet | Jan 2026 | |||||
| Factsheet | Dec 2025 | |||||
| Factsheet | Nov 2025 | |||||
| Factsheet | Oct 2025 | |||||
| Factsheet | Sep 2025 | |||||
| Factsheet | Aug 2025 | |||||
| Factsheet | Jul 2025 | |||||
| Factsheet | Jun 2025 | |||||
| Factsheet | May 2025 | |||||
| Factsheet | Apr 2025 | |||||
| Factsheet | Mar 2025 | |||||
| Factsheet | Feb 2025 | |||||
| Factsheet | Jan 2025 | |||||
| Factsheet | Dec 2024 | |||||
| Factsheet | Nov 2024 | |||||
| Factsheet | Oct 2024 | |||||
| Factsheet | Sep 2024 | |||||
| Monthly Commentary | Jan 2026 | |||||
| Monthly Commentary | Dec 2025 | |||||
| View more Factsheets & Commentaries View less Factsheets & Commentaries | ||||||
| PRIIPs KIDs | ||||||
| Key Information Document (KID) | Jan 2026 | |||||
| Legal Documents | ||||||
| AGM EGM invitation | Jan 2026 | |||||
| Articles of Association | Apr 2016 | |||||
| Notification to Investors | Dec 2025 | |||||
| Notification to Investors | Aug 2025 | |||||
| Notification to Investors | Apr 2025 | |||||
| Notification to Investors | Dec 2024 | |||||
| Notification to Investors | Oct 2024 | |||||
| Notification to Investors | Sep 2024 | |||||
| Notification to Investors | Jun 2024 | |||||
| Notification to Investors | May 2023 | |||||
| Notification to Investors | Nov 2022 | |||||
| Notification to Investors | Jan 2022 | |||||
| Notification to Investors | Sep 2021 | |||||
| Notification to Investors | Jul 2021 | |||||
| Notification to Investors | May 2021 | |||||
| Notification to Investors | Mar 2021 | |||||
| Notification to Investors | Feb 2021 | |||||
| Notification to Investors | Apr 2020 | |||||
| Notification to Investors | Nov 2019 | |||||
| Sales Prospectus | Jan 2026 | |||||
| View more Legal Documents View less Legal Documents | ||||||
| Sustainability Related Disclosures | ||||||
| Exclusion Framework | Jan 2026 | |||||
| Periodic Disclosure | Aug 2025 | |||||
| Pre-contractual Disclosure | Jan 2026 | |||||
| Statement on principal adverse impacts of investment decisions on sustainability factors | Jun 2025 | |||||
| Sustainability Related Disclosures | Jan 2026 | |||||
| Financial Reports | ||||||
| Annual Distribution | Nov 2025 | |||||
| Annual Distribution | Nov 2024 | |||||
| Annual Report | Aug 2025 | |||||
| Distribution Dates | Jan 2026 | |||||
| Quarterly Distribution | Dec 2025 | |||||
| Quarterly Distribution | Sep 2025 | |||||
| Quarterly Distribution | Jun 2025 | |||||
| Quarterly Distribution | Mar 2025 | |||||
| Quarterly Distribution | Dec 2024 | |||||
| Quarterly Distribution | Sep 2024 | |||||
| Quarterly Distribution | Jun 2024 | |||||
| Quarterly Distribution | Mar 2024 | |||||
| Semi-Annual Report | Feb 2025 | |||||
| Semi Annual Distribution | Apr 2025 | |||||
| Semi Annual Distribution | Apr 2024 | |||||
| Semi Annual Distribution | Apr 2023 | |||||
| View more Financial Reports View less Financial Reports | ||||||
| Dealing Information | ||||||
| Holiday Calendar 2026 | Jan 2026 | |||||
| List of Active Retail Share Classes | Jan 2025 | |||||
| Policies | ||||||
| Sanctioned Countries | Oct 2022 | |||||
| Shareclass Naming Convention | Jan 2026 | |||||
RISKS
Subject to change, without notice, only the current prospectus or comparable document of the fund is legally binding.
Limited participation in the potential of single securities
Success of single security analysis and active management cannot be guaranteed
It cannot be guaranteed that the investor will recover the capital invested
Derivatives entail risks relating to liquidity, leverage and credit fluctuations, illiquidity and volatility
Interest rates may vary, bonds suffer price declines on rising interest rates
Investments in foreign currencies are subject to currency fluctuations
Investments in emerging markets may be affected by political developments, currency fluctuations, illiquidity and volatility
Information on how sustainable investment objectives are achieved and how sustainability risks are managed in this Sub-Fund may be obtained here.
Neither the Sub-Fund, nor the Management Company nor the Investment Manager make any representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of an assessment of ESG research and the correct execution of the ESG strategy.
Any index or supporting data referred to is the intellectual property (including registered trademarks) of the applicable licensor. Any product based on an index is in no way sponsored, endorsed, sold or promoted by the applicable licensor and it shall not have any liability with respect thereto. Refer to vontobel.com/terms-of-licenses for more details.
Morningstar rating: © 2026 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
