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, quasi-sovereign and corporate bonds of diverse qualities with different maturities in various currencies. The fund uses derivative financial instruments both for hedging purposes and to take outright market positions. Specifically, the fund can gain exposure to emerging market currencies independently of the currency of the underlying bonds.
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 deeply contrarian approach to emerging market debt, aiming to take advantage of the dislocation in valuations that often present themselves in this inefficient and news-flow driven asset class. We implement this through a five-step process, which combines top-down strategic themes and bottom-up analysis with a focus on maximizing credit remuneration.
While at times our drawdowns can be higher than the broader market, we have certain typical traits we adhere to, depending on what type of phase the market is experiencing:
The emerging market bonds universe comprises of three asset classes:
Historically, all three asset classes have delivered annual returns in excess of 6%, but they all perform differently depending on the prevailing economic environment, which is why the right blend of allocation is so important. We actively allocate between the three asset classes with the aim of obtaining an optimal balance in any market environment.
Therefore, the Emerging Markets Blend Fund provides a solution to investors who desire to outsource their emerging market debt allocation, offering you a combination of the best ideas and allocation. Now, within one tried-and-tested investment vehicle, you have access to the full universe of emerging market bonds, managed by an experienced team of experts.
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 Emerging Market Bonds team, comprising of highly experienced portfolio managers with strong track records. The team also has at its disposal the full capabilities within 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||10.0%||4.5%|
|Number of positions||113.0||2'683|
|Active Share (country, issuer, ISIN)||50% / 87% / 98%|
|[3 years annualized]|
All data is as at Aug 10 2020 unless otherwise indicated.
|Portfolio Manager||Luc D'hooge/Sergey Goncharov|
|Share Class Currency||USD|
|End of fiscal year||31 August|
|Index||J.P. Morgan EM Equal Weight Total Return [BB: JEMBAGTR]|
|Share Class Launch date||Aug 24 2015|
|Swinging single pricing||Yes|
|Fund Registrations||CH, DE, ES, FI, FR, GB, IT, LU, NL, NO, SE, SG|
|Share Class Registrations||CH, DE, ES, FI, FR, GB, IT, LU, NL, NO, SE, SG|
|Highest since launch||160.68|
|Lowest since launch||95.28|
|Fund volume in mln.||USD 111.85|
|Share class volume in mln.||USD 80.65|
|TER||0.80% (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|
|HI (hedged)||CHF||LU1896847891||Accum||Institutional||Oct 26 2018||0.63%||0.86%||Feb 28 2020|
|HI (hedged)||EUR||LU1896847628||Accum||Institutional||Oct 26 2018||0.63%||0.86%||Feb 28 2020|
|HS (hedged)||CHF||LU1896848279||Accum||Institutional||Nov 13 2018||0.00%||0.23%||Feb 28 2020|
|I||USD||LU1256229680||Accum||Institutional||Aug 24 2015||0.63%||0.80%||Feb 28 2020|
|PHS (partially hedged)||CHF||LU2001997159||Accum||Institutional||Jul 05 2019||0.00%||0.23%||Feb 28 2020|
* TER includes performance fee where applicable
All data is as at Jun 30 2020 unless otherwise indicated.
|7.391% Republic of Angola Via Avenir II BV 2023||2.9%|
|3.624% Romanian Government International Bond 2030||2.6%|
|4.85% Czech Republic Government Bond 2057||2.6%|
|2.875% Mexican Bonos 2039||2.4%|
|8.25% Fideicomiso PA Pacifico Tres 2035||2.4%|
|12.5% Saderea DAC 2026||2.3%|
|13.5% East Renewable AB 2021||2.3%|
|2.5% Kingdom of Saudi Arabia 2027||2.3%|
|9.85% Swiss Insured Brazil Power Finance Sarl 2032||2.3%|
|12% Aragvi Finance International DAC 2024||2.2%|
|Factsheets & Commentaries|
|Monthly Commentary||Jul 2020|
|Product Flyer||Oct 2019|
|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 emerging markets may be affected by political developments, currency fluctuations, illiquidity and volatility
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