New emerging market corporate bond fund with focus on high yield segment

Fisch Asset Management successfully launched the FISCH Bond EM Corporates Dynamic Fund in May 2022. The fund primarily invests in high-yield corporate bonds from emerging markets. This segment offers risk-conscious investors a steadily growing selection of investment opportunities, with significantly greater return potential compared to developed markets.

Fisch rounds off its offering through the launch of the FISCH Bond EM Corporates Dynamic Fund, which focuses on the high yield segment, the firm’s third emerging market (EM) strategy.

Fisch brings to the new fund its many years of experience in the management of emerging market corporate bonds, which has been further enhanced by the new addition of a long-established team that joined Fisch in the second half of 2021. The new product complements Fisch’s two pre-existing EM funds, the FISCH Bond EM Corporates Defensive Fund launched in 2010, which invests exclusively in investment grade bonds, and the FISCH Bond EM Corporates Opportunistic Fund launched in 2016. The latter favours the higher-rated bonds within the high yield segment and, in terms of risk-return profile, comes somewhere between the defensive and the new dynamic product. Thomas Fischli Rutz, Head Emerging Markets and highly experienced industry expert, explains the idea behind the launch: “The fund gives risk-conscious investors access to a high yield investment universe that has seen strong growth in recent years, and which delivers potentially high total returns and stable risk premia throughout the cycle.”

Hanspeter Diem, Head of Sales & Relationship Management, says: “With our new fund, we want to reach investors who are seeking opportunities in emerging markets outside the mainstream. These include the next generation of emerging markets – referred to as frontier markets – which are not yet included in the major benchmarks. Also, a substantial complement of first-time issuers and so-called dislocations, which require a great deal of research and very active portfolio management, will provide potential for high performance and diversification.”

The FISCH Bond EM Corporates Dynamic Fund was launched earlier in May and is registered for sale in Switzerland, Germany, Austria, Luxembourg and Liechtenstein. The fund is a sub-fund of the FISCH Umbrella Fund, a Luxembourg SICAV under UCITS regulation. Currency-hedged share classes are available in CHF, EUR and USD. Fisch currently manages client assets in corporate bonds of around CHF 3.8 billion, including dedicated strategies in the high yield and investment grade segments.