Vontobel Fund II - Fixed Maturity Emerging Markets Bond 2026

This bond fund aims to achieve good investment returns over a fixed maturity of 5 years ending 30 October 2026, while respecting risk diversification.

The fund invests primarily in hard-currency sovereign, quasi-sovereign, and corporate bonds of issuers of various credit qualities domiciled in emerging markets and/or doing business in or with emerging markets. The fund may also use derivative financial instruments.

The compact and agile investment team of experienced emerging market specialists principally applies a hold-until-maturity strategy under strict risk control. Possible shifts in the portfolio may include the sale of bonds to cater for fund share redemptions and the replacement of outperforming and somewhat relative expensive bonds by more attractive ones. Moreover, if the team deems the default risk of any issuer of the bonds held in the fund to be elevated, they will aim to sell the respective paper prior to the credit event occurring and to replace it by an appropriate bond whose maturity matches the remaining time to maturity of the portfolio.