Swiss & Global launches JB Emerging Markets Corporate Bond Fund
Swiss & Global Asset Management has broadened its range of emerging market bond funds with the JB Emerging Markets Corporate Bond Fund.
The JB Emerging Markets Corporate Bond Fund allows investors to diversify their fixed income allocation through corporate bonds from issuers in emerging markets, which can provide substantially higher yields and better fundamentals than comparable corporate bonds issued in the developed world.
The emerging market corporate bond market now stands at around USD1trn of assets and covers 38 countries including Brazil, Russia, Hong Kong and China. Three quarters of the market is investment grade paper and the average credit rating is BBB+.
The new fund will combine proprietary fundamental top down and extensive bottom up analysis to identify the most attractive investment opportunities. Key factors in the bottom-up analysis include company strategy, corporate governance, sector outlook, note structure and covenants. Country, industry and issuer weightings, as well as duration and curve selection decisions, are based on absolute and relative value analysis. Robust risk management, for example position size limits, will minimise exposure to idiosyncratic company risk.
The fund will be managed by Enzo Puntillo, Dorthe Fredsgaard Nielsen and Tania Minella. It complements the firm’s existing fund range, which includes relative and absolute return strategies, hard currency and local currency investments, as well as a dedicated inflation linked product. The first emerging bond fund in the range was launched in 1997.
Enzo Puntillo, head fixed income emerging markets and co-manager of the JB Emerging Markets Corporate Bond Fund, Swiss & Global Asset Management, says: “Emerging markets are the undisputed driver of global growth and emerging corporates are benefiting from strong macro-economic fundamentals, low leverage, policy reforms and consumer growth.
“This fund is designed for investors looking for diversification from the traditional corporate fixed income universe. Additionally, it can enhance returns and fundamentally reduce the risk profile of their portfolios. It provides active exposure to an increasingly attractive and diverse asset class to help investors in their hunt for yield, a growing challenge in today’s environment.”