Vontobel Asset Management launches GBP share class of global investment grade credit fund
Vontobel is launching a GBP share class of the Vontobel Fund – Global Corporate Bond Mid Yield. This launch emphasises Vontobel’s commitment to provide UK investors with access to its global investment grade expertise.
The launch of the GBP share class of the Vontobel Fund – Global Corporate Bond Mid Yield (the “Fund”), provides UK investors with access to a broadly diversified global corporate bond fund with a strong long-term performance track record. The fund invests in high credit-quality issuers in order to generate income over the long-term. As individual regions are in various stages of the credit cycle and perform differently at any given point in time, a global portfolio provides better diversification than a single country or region approach. This can also significantly lessen the impact of local shocks on a portfolio such Brexit, European sovereign crisis etc.
“Bonds from the same issuer, denominated in different currencies, often exhibit price discrepancies creating relative-value opportunities,” says Christian Hantel, Senior Portfolio Manager. “By aiming to identify the most attractive bonds across the main currencies, we are able to extract value for our investors, with the currency risk fully hedged. Also, a key driver of returns are bonds with the potential of a rating upgrade to the mid-yield range. This gives us the opportunity to invest early and profit from the spread contraction as the bond climbs up the rating ladder.”
“This fund aims to generate steady income and achieve above-average investment returns over a full credit cycle, while respecting risk diversification, which is important to UK investors,“ says Sheridan Bowers, Head of UK and Ireland. “The fund invests in investment grade corporate bonds denominated in different currencies with various maturities. The focus is on global diversification and selection of individual securities to ensure that the credit spread compensates adequately for the risks involved.”
The Fund was first launched in October 2015 and has GBP430 million/USD564 million assets under management as of 31 July 2020.