Senior Portfolio Manager
This bond fund aims to generate the best possible investment returns over a full economic cycle, while respecting risk diversification.
The fund invests across emerging markets, mainly in government bonds of diverse qualities with different maturities in various local currencies. 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 uses a proprietary sustainability model to define the investment universe. It excludes countries that do not meet specific environmental, social and governance criteria. 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 Asset Management Emerging Market Bonds team manage the fund. The team also has at its disposal the full capabilities of the Zurich-based Fixed Income boutique. This optimal team structure enables proactive early idea generation and implementation.
All data is as at Jun 30 2020 unless otherwise indicated.
|Jul 01 2015 - Jun 30 2016||Jul 01 2016 - Jun 30 2017||Jul 01 2017 - Jun 30 2018||Jul 01 2018 - Jun 30 2019||Jul 01 2019 - Jun 30 2020|
|Yield to maturity||5.2%|
|[3 years annualized]|
All data is as at Aug 10 2020 unless otherwise indicated.
|Portfolio Manager||Thierry Larose/Carl Vermassen|
|Share Class Currency||USD|
|End of fiscal year||31 August|
|Index||J.P. Morgan GBI EM Global Diversified Composite USD|
|Share Class Launch date||Jan 25 2011|
|Swinging single pricing||Yes|
|Fund Registrations||AT, CH, DE, ES, FI, FR, GB, IT, LI, LU, NL, NO, PT, SG|
|Share Class Registrations||AT, CH, DE, FI, GB, IT, LI, LU, NL, NO, SG|
|Highest since launch||116.59|
|Lowest since launch||77.98|
|Fund volume in mln.||USD 213.97|
|Share class volume in mln.||USD 134.65|
|TER||0.90% (Feb 28 2020)|
|Depository||RBC Investor Services Bank S.A.|
|Management Company||Vontobel Asset Management S.A.|
|Swiss Paying Agent||Bank Vontobel AG|
|Swiss Representative||Vontobel Fonds Services AG|
|Share class||Currency||ISIN||Distrib.||Type||Launch date||Management fee||TER||TER Date|
|A||USD||LU0563307551||Dist||Retail||Jan 25 2011||1.20%||1.56%||Feb 28 2020|
|AM||USD||LU0563307635||Dist||Retail||Jun 25 2012||1.60%||1.96%||Feb 28 2020|
|AN||USD||LU1683487208||Dist||Retail||Oct 11 2017||0.60%||0.94%||Feb 28 2020|
|B||EUR||LU0752071745||Accum||Retail||Mar 12 2012||1.20%||1.56%||Feb 28 2020|
|B||CHF||LU0752070267||Accum||Retail||Mar 12 2012||1.20%||1.56%||Feb 28 2020|
|B||USD||LU0563307718||Accum||Retail||Jan 25 2011||1.20%||1.56%||Feb 28 2020|
|C||USD||LU0563307809||Accum||Retail||Jan 25 2011||1.60%||1.96%||Feb 28 2020|
|H (hedged)||CHF||LU0563308369||Accum||Retail||Jan 18 2011||1.20%||1.62%||Feb 28 2020|
|H (hedged)||EUR||LU0563308443||Accum||Retail||Jan 25 2011||1.20%||1.62%||Feb 28 2020|
|HI (hedged)||CHF||LU0563308799||Accum||Institutional||Mar 16 2011||0.60%||0.96%||Feb 28 2020|
|HI (hedged)||EUR||LU0563308872||Accum||Institutional||Apr 10 2014||0.60%||0.96%||Feb 28 2020|
|HN (hedged)||CHF||LU1683483470||Accum||Retail||Oct 05 2017||0.60%||1.00%||Feb 28 2020|
|HN (hedged)||EUR||LU1683487380||Accum||Retail||Oct 12 2017||0.60%||1.00%||Feb 28 2020|
|I||USD||LU0563307981||Accum||Institutional||Jan 25 2011||0.60%||0.90%||Feb 28 2020|
|N||USD||LU1683483124||Accum||Retail||Oct 05 2017||0.60%||0.94%||Feb 28 2020|
* TER includes performance fee where applicable
All data is as at Jun 30 2020 unless otherwise indicated.
|Factsheets & Commentaries|
|Monthly Commentary||Jul 2020|
|Articles of Association||Apr 2016|
|Notification to Investors||Apr 2020|
|Sales Prospectus||Dec 2019|
|Annual Report||Aug 2019|
|Dividend Payout||Jan 2019|
|Semi-Annual Report||Feb 2020|
|Holiday Calendar 2020||Jan 2020|
|List of Active Retail Share Classes||Dec 2018|
|Sanctioned Countries||Sep 2016|
|Shareclass Naming Convention||Nov 2019|
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
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