Offering investors more flexibility, it will allow them to access strong real yields in the current low yield environment. It will be open to DFMs and institutional investors.
The firm stated the fund is currently yielding 6.8% and has delivered positive performance since its inception in December 2010. In 2012 it returned 19.11%.
Local emerging market inflation linked bonds now account for around 25% of the total market, and this fund was one of the first to offer pure exposure to interest rates and currencies in local emerging markets.
Swiss and Global has an AUM of around CHF 87.4bn and emerged from Julius Baer Asset Management in October 2009. It is the exclusive manager of Julius Baer funds.
Enzo Puntillo, head of fixed income emerging markets and fund manager of the JB Emerging Markets Inflation Linked Bond Fund, commented: “Yields for many traditional safe haven assets have fallen to a level below the current inflation rate. For investors that wish to diversify their global fixed income portfolio in their search for yield, emerging market inflation linked bonds offer real long-term returns.”
Earlier this month RWC launched a distribution share class on its Global Covertibles Fund, a move it said was in reponse to DFMs and their clients’ appetite for income.
