Asset Management. Vontobel Fund Emerging Markets Corporate Bond

Transcription

1 Asset Management Vontobel Fund Emerging Markets Corporate Bond This document was produced for Institutional clients, for distribution in LUX CHE DEU ESP FIN FRA ITA SWE SGP / April 2018

2 Four reasons to invest in the Vontobel Fund Emerging Markets Corporate Bond Multitude of countries, industries and companies offer true diversification to any portfolio Tried and tested value approach offers stable and recurring income, enhanced by specific event-driven stories Deep knowledge of issuers and their decision makers allows us pick bottom-up ideas decorrelated from the broader market and global interest rates Asset class with the lowest volatility and duration within emerging markets 1 PRODUCT INFORMATION Vontobel Fund Emerging Markets Corporate Bond LAUNCH DATE REFERENCE INDEX JPM CEMBI Broad Diversified SHARE CLASS I USD SHARE CLASS TYPE ISIN CODE TER* TRANSACTION COSTS** Cap INSTITUTIONAL LU % 0.79 % * per ** per

3 Why invest in emerging market corporate bonds The size of the emerging market corporate debt universe comes as a surprise to many investors. At 2 trillion US dollars, the emerging market corporate bond universe is twice the size of US dollar denominated emerging sovereigns 2. With an average rating of BBB-, the credit quality of the corporates is better than their sovereign counterparts 3. With the multitude of countries, industries as well as unique issuers in different phases of the economic cycle, there is a broad set of opportunities available, providing a combination of favorable yield and income. As the growth differential versus developed markets increasing in the emerging markets favor, this space is set to rise further. The main story though is the prolific inefficiencies in the emerging corporate bond space which makes it an active manager s paradise. We take advantage of these inefficiencies by complementing our tried and tested value-driven strategies with event-driven opportunities. As contrarian, bottom-up investors, we actively seek stories which other managers avoid. What s more, we exploit the situations that they sometimes provoke! These trades are highly rewarding, truly diversified strategies, but above all, decorrelated from the broader markets because price action is issuer specific. In a nutshell, pure, uncorrelated and idiosyncratic alpha! In emerging market corporates there are always bonds that offer income and capital gains for an active manager who knows where to look. Wouter Van Overfelt, Senior Portfolio Manager 1 JPM CEMBI Broad Diversified vs JPM EMBIG Diversified 2 JPM EM Corporate Technicals: Supply and Bond Stock Trends 3 JPM 2018 Outlook Living on the edge of tomorrow

4 Why us Disciplined and repeatable investment process incorporating both contrarian and value approaches Seasoned investment team led by highly experienced portfolio managers with strong track records. Optimal team structure, enabling proactive early idea generation and implementation into client portfolios Historically, consistent superior risk-adjusted returns versus peer group

5 Opportunities & risks Opportunities Broad diversification across numerous securities Possible extra returns through single security analysis and active management Gains on invested capital possible Use of derivatives for hedging purposes may increase subfund s performance and enhance returns Bond investments offer interest income and capital gains opportunities on declining market yields Investments in foreign currencies might generate currency gains Gains through participating in the growth potential of emerging markets are possible Risks 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.

6 Portfolio Managers Wouter Van Overfelt Senior Portfolio Manager Joined Vontobel in 2013 as Portfolio Manager in the Emerging Market Bonds team Head Business Control, Central Portfolio Management unit Gaz de France 2012 to 2013 Senior Credit Risk Modeller and member of the Credit Portfolio Modelling and Pricing team at Dexia Group from 2010 to 2012 Portfolio Manager and Quantitative Analyst Dexia Asset Management 2008 to 2010 PhD and Master s in Applied Economics from the University of Antwerp Sergey Goncharov Portfolio Manager Joined Vontobel in 2016 as Corporate Credit Analyst in the Emerging Market Bonds team Senior Credit Analyst at Sberbank CIB in Moscow from 2011 to 2016 Worked for National Bank Trust in Moscow from 2009 to 2011, analyzing commodity related sectors in Russia, Kazakhstan and Ukraine Master s degree in Economics from the New Economic School in Moscow and a degree in Mathematics from the Moscow State University

7 This document was produced for Institutional clients, for distribution in LUX CHE DEU FIN SWE ITA GBR FRA SGP ESP. This document is for information purposes only and does not constitute an offer, solicitation or recommendation to buy or sell shares of the fund/fund units or any investment instruments, to effect any transactions or to conclude any legal act of any kind whatsoever. Subscriptions of shares of the fund should in any event be made solely on the basis of the fund's current sales prospectus (the Sales Prospectus ), the Key Investor Information Document ( KIID ), its articles of incorporation and the most recent annual and semi-annual report of the fund and after seeking the advice of an independent finance, legal, accounting and tax specialist. This document is directed only at recipients who are institutional clients such as eligible counterparties or professional clients as defined by the Markets in Financial Instruments Directive 2004/39/EC ( MiFID ) or similar regulations in other jurisdictions. In particular, we wish to draw your attention to the following risks: Investments in the securities of emerging- market countries may exhibit considerable price volatility and in addition to the unpredictable social, political and economic environment may also be subject to general operating and regulatory conditions that differ from the standards commonly found in industrialised countries. The currencies of emerging-market countries may exhibit wider fluctuations. Investments in riskier, higher-yielding bonds are generally considered to be more speculative in nature. These bonds carry a higher credit risk and their prices are more volatile than bonds with superior credit ratings. There is also a greater risk of losing the original investment and the associated income payments. Investment universe may involve investments in countries where the local capital markets may not yet qualify as recognised capital markets. Investments in derivatives are often exposed to the risks associated with the underlying markets or financial instruments, as well as issuer risks. Derivatives tend to carry more risk than direct investments. Money market investments are associated with risks of a money market, such as interest rate fluctuations, inflation risk and economic instability. Interested parties may obtain the above-mentioned documents free of charge from the authorised distribution agencies and from the offices of the fund at Boulevard de la Foire, L-1528 Luxembourg, the representative in Switzerland: Vontobel Fonds Services AG, Gotthardstrasse 43, 8022 Zurich, the paying agent in Switzerland: Bank Vontobel AG, Gotthardstrasse 43, 8022 Zurich, the paying agent in Germany: B. Metzler seel. Sohn & Co. KGaA, Grosse Gallusstrasse 18, Frankfurt/Main. Refer for more information on the fund to the latest prospectus, annual and semi-annual reports as well as the key investor information documents ( KIID ). These documents may also be downloaded from our website at vontobel.com/am. The KIID is available in Finnish. The KIID is available in Swedish. Refer for more information regarding subscriptions in Italy to the Modulo di Sottoscrizione. For any further information: Vontobel Asset Management S.A., Milan Branch, Piazza degli Affari 3, Milano, telefono: , clientrelation@vontobel.it. The funds authorised for distribution in the United Kingdom can be viewed in the FCA register under the Scheme Reference Number This communication is directed only at recipients who are eligible counterparties or professional clients, as defined in the Glossary to the Financial Conduct Authority s Handbook of Rules and Guidance. Any investment or service to which this communication relates is only available to and will only be engaged in with such persons. Any other person who receives this communication should not

8 rely on or act upon this communication. This information was approved by Vontobel Asset Management SA, London Branch, which has its registered office at Third Floor, 22 Sackville Street, London W1S 3DN and is authorised by the Commission de Surveillance du Secteur Financier (CSSF) and subject to limited regulation by the Financial Conduct Authority (FCA). Details about the extent of regulation by the FCA are available from Vontobel Asset Management SA, London Branch, on request. The KIID can be obtained in English from Vontobel Asset Management SA, London Branch, Third Floor, 22 Sackville Street, London W1S 3DN or downloaded from our website vontobel.com/am. The KIID is available in French. The fund is authorized to the commercialization in France since 04/07/2017. Refer for more information on the funds to the Document d Information Cle pour l Investisseur (DICI). The fund and its subfunds are not available to retail investors in Singapore. Selected sub-funds of the fund are currently recognized as restricted schemes by the Monetary Authority of Singapore. These sub- funds may only be offered to certain prescribed persons on certain conditions as provided in the Securities and Futures Act, Chapter 289 of Singapore. In Spain, funds authorised for distribution are recorded in the register of foreign collective investment companies maintained by the Spanish CNMV (under number 280). The KIID can be obtained in Spanish from Vontobel Asset Management S.A., Spain Branch, Paseo de la Castellana, 95, Planta 18, E Madrid or electronically from atencionalcliente@vontobel.es. Although Vontobel Asset Management AG ( Vontobel ) believes that the information provided in this document is based on reliable sources, it cannot assume responsibility for the quality, correctness, timeliness or completeness of the information contained in this document. Except as permitted under applicable copyright laws, none of this information may be reproduced, adapted, uploaded to a third party, linked to, framed, performed in public, distributed or transmitted in any form by any process without the specific written consent of Vontobel. To the maximum extent permitted by law, Vontobel will not be liable in any way for any loss or damage suffered by you through use or access to this information, or Vontobel s failure to provide this information. Our liability for negligence, breach of contract or contravention of any law as a result of our failure to provide this information or any part of it, or for any problems with this information, which cannot be lawfully excluded, is limited, at our option and to the maximum extent permitted by law, to resupplying this information or any part of it to you, or to paying for the resupply of this information or any part of it to you. Neither this document nor any copy of it may be distributed in any jurisdiction where its distribution may be restricted by law. Persons who receive this document should make themselves aware of and adhere to any such restrictions. In particular, this document must not be distributed or handed over to US persons and must not be distributed in the USA. vontobel.com/am 100% recycled paper