The new fund, launched on 28 August, will be managed by Enzo Puntillo, Dorthe Fredsgaard Nielsen and Tania Minella using Swiss & Global’s existing investment processes combining proprietary, fundamental top-down and extensive bottom-up analysis.
The bottom-up strategy will include analysis of company strategy, corporate governance, sector outlook, note structure and covenants.
The Luxembourg-domiciled Sicav will sit alongside the existing range of relative and absolute return propositions, hard currency as well as local currency investments. It is available in dollar, euro, sterling and Swiss-franc share classes.
The first emerging bond fund in the range was launched in 1997 with a specialist inflation-linked emerging market fund added in May last year that currently has £170m in assets under management.
Puntillo, head fixed income emerging markets at Swiss & Global AM commented: “Emerging markets are the undisputed driver of global growth and emerging corporates are benefitting from strong macro-economic fundamentals, low leverage, policy reforms and consumer growth.”
Swiss & Global is looking to take advantage of a $1trn emerging market corporate bond market across 38 issuing countries. Around 75% of bonds are investment grade quality with their average credit rating being BBB+.