Head of Emerging Markets Bonds, 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 and quasi-sovereign bonds of diverse qualities with different maturities in various hard currencies. In addition, the fund may have limited exposures to emerging market corporate bonds as well as emerging market currencies. The fund uses derivative financial instruments, primarily for hedging purposes.
The compact and agile investment team of experienced emerging market specialists focuses on spread optimization for a given level of risk. Based on in-depth research and using a proprietary valuation model, the portfolio managers continuously compare the levels of remuneration potential available across issuer qualities, countries, interest rates, currencies and maturities within the investment universe to identify the most rewarding opportunities, which may be contrarian to mainstream views. To seize them, the team flexibly adapts the portfolio while keeping credit, interest rate and currency risks in check.
"We have consistently delivered value to our clients by identifying price discrepancies and investing with high conviction."
We take a five-step process that brings together top-down with bottom-up. We develop market thematic and country views and then dive into bottom-up credit selection to improve yields and spread without penalizing the average rating of the portfolio.
By maximizing the payoff/credit risk ratio we aim to find recurring, low risk means of generating excess returns.
The emerging market bond asset class tends to be driven by short-term news flow, which often takes precedence over fundamentals, resulting in irrational investor behavior. This creates mispricing scenarios which can be exploited by active investors who are able to take a contrarian view when markets behave whimsically.
Despite its perception as an asset class with high volatility and greater risks, emerging market debt (in hard currencies) has historically delivered the best long-term, risk-adjusted returns compared to other traditional asset classes. In comparison – while offering a greater return – emerging market debt volatility has been lower than US and global high-yield bonds. On the risk spectrum, emerging market hard-currency debt sits between traditional fixed-income segments and equities, making it a viable performance-generating addition to a well-diversified portfolio.
Segmented markets and risk aversion offer high return, low volatility and decorrelated opportunities. Our investment philosophy rests on two inefficiencies and sources of performance
The fund is managed by the Head of Emerging Markets Bonds, Luc D’hooge who is assisted by the Vontobel Asset Management Emerging Market Bonds team, comprising of highly experienced portfolio managers with strong track records. 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 Aug 31 2020 unless otherwise indicated.
|Sep 01 2015 - Aug 31 2016||Sep 01 2016 - Aug 31 2017||Sep 01 2017 - Aug 31 2018||Sep 01 2018 - Aug 31 2019||Sep 01 2019 - Aug 31 2020|
|Yield to maturity||6.8%||4.2%|
|Yield to maturity after hedge||6.9%||4.2%|
|Number of positions||234.0||842.0|
|Active Share (country, issuer, ISIN)||41% / 66% / 89%|
|[3 years annualized]|
All data is as at Sep 28 2020 unless otherwise indicated.
|Portfolio Manager||Luc D'hooge|
|Share Class Currency||USD|
|End of fiscal year||31 August|
|Index||J.P. Morgan EMBI Global Diversified|
|Share Class Launch date||May 15 2013|
|Swinging single pricing||Yes|
|Fund Registrations||AT, CH, DE, ES, FI, FR, GB, IT, LI, LU, NL, NO, PT, SE, SG|
|Share Class Registrations||AT, CH, DE, ES, FI, FR, GB, IT, LI, LU, NL, NO, SE, SG|
|Highest since launch||146.88|
|Lowest since launch||89.62|
|Fund volume in mln.||USD 4,435.03|
|Share class volume in mln.||USD 1,350.55|
|TER||0.77% (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|
|AH (hedged)||EUR||LU1482064224||Dist||Retail||Sep 08 2016||1.10%||1.42%||Feb 28 2020|
|AHI (hedged)||CHF||LU1572142336||Dist||Institutional||Mar 10 2017||0.55%||0.83%||Feb 28 2020|
|AHN (hedged)||EUR||LU1684196279||Dist||Retail||Oct 05 2017||0.55%||0.87%||Feb 28 2020|
|AI||EUR||LU1086766554||Dist||Institutional||Jul 09 2014||0.55%||0.77%||Feb 28 2020|
|B||USD||LU0926439562||Accum||Retail||May 15 2013||1.10%||1.36%||Feb 28 2020|
|H (hedged)||EUR||LU0926439992||Accum||Retail||May 15 2013||1.10%||1.42%||Feb 28 2020|
|H (hedged)||CHF||LU0926440065||Accum||Retail||May 15 2013||1.10%||1.42%||Feb 28 2020|
|HI (hedged)||CHF||LU0926440495||Accum||Institutional||May 15 2013||0.55%||0.83%||Feb 28 2020|
|HI (hedged)||GBP||LU1700373241||Accum||Institutional||Oct 27 2017||0.55%||0.83%||Feb 28 2020|
|HI (hedged)||EUR||LU0926440222||Accum||Institutional||May 15 2013||0.55%||0.83%||Feb 28 2020|
|HN (hedged)||CHF||LU1683481938||Accum||Retail||Oct 03 2017||0.55%||0.87%||Feb 28 2020|
|HN (hedged)||EUR||LU1683488438||Accum||Retail||Oct 12 2017||0.55%||0.87%||Feb 28 2020|
|HS (hedged)||CHF||LU1627767111||Accum||Institutional||Jun 21 2017||0.00%||0.21%||Feb 28 2020|
|I||USD||LU0926439729||Accum||Institutional||May 15 2013||0.55%||0.77%||Feb 28 2020|
|N||USD||LU0926439646||Accum||Retail||May 15 2013||0.55%||0.81%||Feb 28 2020|
|S||USD||LU1171709691||Accum||Institutional||Jan 20 2015||0.00%||0.15%||Feb 28 2020|
* TER includes performance fee where applicable
All data is as at Aug 31 2020 unless otherwise indicated.
|Factsheets & Commentaries|
|Monthly Commentary||Aug 2020|
|Product Flyer||Oct 2019|
|AGM EGM invitation||Jan 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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