Vontobel has announced an emerging market bond fund with a three-year maturity, named the Vontobel Fund II- Fixed Maturity Emerging Markets Bond 2.
The Luxembourg-domiciled fund began its seeding period on 2 April and will continue to 14 May, when the fund will officially launch. It is targeting a 7% yield to maturity with an average investment-grade rating and has an institutional share class management fee of 0.35%.
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Sergey Goncharov (pictured left), who has been with Vontobel since 2016, and Wouter van Overfelt (pictured right), who joined in 2013, will manage the fund.
“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,” Gocharov said.
