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What's New In Investments, Funds? – Vontobel

Editorial Staff 8 April 2024

What's New In Investments, Funds? – Vontobel

The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.

Vontobel has just launched a three-year fixed maturity emerging market bond fund, which offers investors an opportunity to capitalise on higher yields through a three-year segment of emerging market bonds in hard currencies.

The Vontobel Fund II – Fixed Maturity Emerging Markets Bond 2 – aims to offer a higher spread, yield and coupon relative to comparable bonds in developed markets, the firm said in a statement. The fund invests mainly in emerging market bonds in hard currencies. The fund aims for an average investment-grade rating and a target yield to maturity of 7 per cent, depending on market evolution. The seeding period for the fund began on 2 April and will last until 14 May 2024.

The fund focuses on optimising the level of spread in short-maturity emerging market bonds.

“Choosing a three-year maturity aligns with current market conditions, which are favourable for emerging market bonds. With an expected downward trend in US interest rates, investors have the opportunity for an attractive risk-return ratio over a fixed time horizon, locking in higher yields,” Sergey Goncharov, portfolio manager, said.

The fund is registered for distribution in Austria, France, Germany, Italy, Liechtenstein, Luxembourg, Spain, Switzerland, and the UK.

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