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.
Typical behavior during consolidating markets
Typical behavior during rallying markets
Typical behavior in overheating markets
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 Luc D’hooge who is assisted by the Vontobel Emerging Market Bonds team, comprising of highly experienced portfolio managers with strong track records. They also have at their 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 30 Sep 2024 unless otherwise indicated.
| 1M | YTD | 1Y | 3 yrs p.a. | 5 yrs p.a. | Since Inception | |
|---|---|---|---|---|---|---|
| HN (hedged) CHF | 2.1% | 10.8% | 21.0% | -2.6% | -0.8% | -5.1% |
| Index | 1.6% | 5.3% | 13.5% | -4.0% | -2.1% | -7.8% |
| 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|
| HN (hedged) CHF | 9.5% | -22.2% | -0.3% | -0.6% | 11.0% | -9.5% | NA | NA | NA | NA |
| Index | 6.1% | -20.3% | -3.0% | 3.3% | 11.2% | -7.4% | NA | NA | NA | NA |
| Portfolio | Index | |
|---|---|---|
| Volatility | 12.6% | 10.6% |
| Active Share () | ||
| [3 years annualized] | ||
All data is as at 31 Oct 2024 unless otherwise indicated.
| Portfolio Manager | Luc D'hooge |
|---|---|
| Fund Domicile | Luxembourg |
| Fund Currency | USD |
| Share Class Currency | CHF |
| Risk Level | 5.00 (7 Oct 2024) |
| Year End | 31 August |
| Index | J.P. Morgan EMBI Global Diversified Index (CHF hedged) |
| Share Class Launch date | 3 Oct 2017 |
| Distribution Type | Accumulating |
| Swing pricing | Yes |
| SFDR Classification | Article 8 |
| Fund Registrations | AT, CH, DE, ES, FI, FR, GB, IT, LI, LU, NL, NO, PT, SE, SG |
| Share Class Registrations | AT, CH, DE, FR, GB, LU, SG |
| Highest since launch | 105.44 |
|---|---|
| Lowest since launch | 69.32 |
| Share class size in mln. | CHF 12.81 |
| Management fee | 0.55% |
|---|---|
| TER* | 0.90% (29 Feb 2024) |
| OCF | 0.87% (7 Oct 2024) |
| ISIN | LU1683481938 |
|---|---|
| Valor | 38261772 |
| Bloomberg | VFEMHNH LX |
| WKN | A2JKLH |
| Depository | 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* |
|---|---|---|---|---|---|---|---|
| AH (hedged) | EUR | LU1482064224 | Distributing | Retail | 8 Sep 2016 | 1.10% | 1.45% (29 Feb 2024) |
| AHG (hedged) | CHF | LU2550873801 | Distributing | Institutional | 21 Nov 2022 | 0.40% | 0.64% (29 Feb 2024) |
| AHI (hedged) | CHF | LU1572142336 | Distributing | Institutional | 10 Mar 2017 | 0.55% | 0.86% (29 Feb 2024) |
| AHN (hedged) | CHF | LU2269201294 | Distributing | Retail | 18 Dec 2020 | 0.55% | 0.90% (29 Feb 2024) |
| AHN (hedged) | EUR | LU1684196279 | Distributing | Retail | 5 Oct 2017 | 0.55% | 0.90% (29 Feb 2024) |
| AI | USD | LU1572142179 | Distributing | Institutional | 10 Mar 2017 | 0.55% | 0.80% (29 Feb 2024) |
| AI | EUR | LU1086766554 | Distributing | Institutional | 9 Jul 2014 | 0.55% | 0.80% (29 Feb 2024) |
| AQHNG (hedged) | GBP | LU1991126357 | Distributing | Retail | 20 May 2019 | 0.40% | 0.68% (29 Feb 2024) |
| B | USD | LU0926439562 | Accumulating | Retail | 15 May 2013 | 1.10% | 1.39% (29 Feb 2024) |
| G | USD | LU2122467942 | Accumulating | Institutional | 3 Mar 2020 | 0.40% | 0.58% (29 Feb 2024) |
| H (hedged) | CHF | LU0926440065 | Accumulating | Retail | 15 May 2013 | 1.10% | 1.45% (29 Feb 2024) |
| H (hedged) | EUR | LU0926439992 | Accumulating | Retail | 15 May 2013 | 1.10% | 1.45% (29 Feb 2024) |
| HG (hedged) | GBP | LU2550873983 | Accumulating | Institutional | 21 Nov 2022 | 0.40% | 0.64% (29 Feb 2024) |
| HG (hedged) | EUR | LU2086836165 | Accumulating | Institutional | 6 Dec 2019 | 0.40% | 0.71% (29 Feb 2024) |
| HG (hedged) | CHF | LU2514512818 | Accumulating | Institutional | 7 Sep 2022 | 0.40% | 0.71% (29 Feb 2024) |
| HI (hedged) | CHF | LU0926440495 | Accumulating | Institutional | 15 May 2013 | 0.55% | 0.86% (29 Feb 2024) |
| HI (hedged) | EUR | LU0926440222 | Accumulating | Institutional | 15 May 2013 | 0.55% | 0.86% (29 Feb 2024) |
| HI (hedged) | GBP | LU1700373241 | Accumulating | Institutional | 27 Oct 2017 | 0.55% | 0.86% (29 Feb 2024) |
| HN (hedged) | CHF | LU1683481938 | Accumulating | Retail | 3 Oct 2017 | 0.55% | 0.90% (29 Feb 2024) |
| HN (hedged) | EUR | LU1683488438 | Accumulating | Retail | 12 Oct 2017 | 0.55% | 0.90% (29 Feb 2024) |
| HNG (hedged) | CHF | LU2447966644 | Accumulating | Retail | 22 Mar 2022 | 0.40% | 0.68% (29 Feb 2024) |
| HS (hedged) | CHF | LU1627767111 | Accumulating | Institutional | 21 Jun 2017 | 0.00% | 0.24% (29 Feb 2024) |
| I | USD | LU0926439729 | Accumulating | Institutional | 15 May 2013 | 0.55% | 0.80% (29 Feb 2024) |
| N | USD | LU0926439646 | Accumulating | Retail | 15 May 2013 | 0.55% | 0.84% (29 Feb 2024) |
| S | USD | LU1171709691 | Accumulating | Institutional | 20 Jan 2015 | 0.00% | 0.18% (29 Feb 2024) |
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 30 Sep 2024 unless otherwise indicated.
| Bond | Allocation | |
|---|---|---|
| 2% Romania 14.04.2033 Reg-S Senior | 2.4% | |
| 8.375% Ecopetrol 19.01.2036 Senior | 2.2% | |
| 4.7% BOAD 22.10.2031 Reg-S Senior | 2.0% | |
| 7.25% MC BRAZIL DOWN 30.06.2031 Reg-S Senior | 2.0% | |
| 4.625% Gov of Sharjah 17.01.2031 Senior | 1.7% | |
| 5.125% ADNOC Murban 11.09.2054 Reg-S Senior | 1.7% | |
| 5.5% ADQ 08.05.2034 Reg-S Senior | 1.6% | |
| 8.25% Transnet SOC 06.02.2028 Reg-S Senior | 1.6% | |
| 6.097% Gabon Blue 01.08.2038 Reg-S Senior | 1.6% | |
| 6% Bahamas 21.11.2028 Reg-S Senior | 1.6% |
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| Document | Date | DE | EN | ES | FR | IT |
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| Factsheet | Apr 2019 | |||||
| Monthly Commentary | Sep 2024 | |||||
| Monthly Commentary | Aug 2024 | |||||
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| PRIIPs KIDs | ||||||
| Key Information Document (KID) | Oct 2024 | |||||
| Legal Documents | ||||||
| AGM EGM invitation | Jan 2024 | |||||
| AGM EGM invitation | Jan 2023 | |||||
| AGM EGM invitation | Jan 2022 | |||||
| AGM EGM invitation | May 2021 | |||||
| AGM EGM invitation | Jan 2021 | |||||
| AGM EGM invitation | Jan 2020 | |||||
| Articles of Association | Apr 2016 | |||||
| Notification to Investors | Oct 2024 | |||||
| Notification to Investors | Sep 2024 | |||||
| Notification to Investors | Jun 2024 | |||||
| Notification to Investors | Dec 2023 | |||||
| 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 | Oct 2024 | |||||
| View more Legal Documents View less Legal Documents | ||||||
| Sustainability Related Disclosures | ||||||
| Pre-contractual Disclosure | Jul 2024 | |||||
| Statement on principal adverse impacts of investment decisions on sustainability factors | Jun 2024 | |||||
| Sustainability Related Disclosures | Jan 2024 | |||||
| Financial Reports | ||||||
| Annual Distribution | Nov 2023 | |||||
| Annual Report | Aug 2023 | |||||
| Distribution Dates | Jan 2024 | |||||
| Quarterly Distribution | Sep 2024 | |||||
| Quarterly Distribution | Jun 2024 | |||||
| Quarterly Distribution | Mar 2024 | |||||
| Semi-Annual Report | Feb 2024 | |||||
| Semi Annual Distribution | Apr 2024 | |||||
| Semi Annual Distribution | Apr 2023 | |||||
| View more Financial Reports View less Financial Reports | ||||||
| Dealing Information | ||||||
| Holiday Calendar 2024 | Jan 2024 | |||||
| List of Active Retail Share Classes | Mar 2024 | |||||
| Policies | ||||||
| Sanctioned Countries | Oct 2022 | |||||
| Shareclass Naming Convention | Jan 2022 | |||||
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.
Morningstar rating: © 2024 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.
ANY INDEX OR SUPPORTING DATA REFERRED TO HEREIN 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.
