FAM,
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Fisch Asset Management launched the FISCH Bond Global IG Corporates Fund at the end of April, which invests in global investment grade (IG) corporate bonds across multiple currencies. High-quality corporates offer higher yields than low or negatively yielding government bonds.
With the new FISCH Bond Global IG Corporates Fund, Fisch draws on its many years of experience in managing global corporate bonds across all regions and rating segments. The precursor to the new fund was the FISCH Bond Global Corporates Fund, which launched in 2014 and whose investment grade investment universe includes a strategic allocation to emerging markets and high yield bonds. Both products are managed by Maria Staeheli and Oliver Reinhard.
Maria Staeheli explains the idea behind the new product: “With corporate bonds, the fund offers an attractive alternative to low or even negative-yielding government bonds. In addition, the volatility of corporate bonds is lower due to the negative correlation between risk premiums and interest rates. With a market size of over USD 12 trillion, the segment is one of the largest and most liquid in the bond universe.”
The fund can invest up to 10% of its assets into high yield bonds in order to take advantage of opportunities in the so-called ‘cross-over’ segment. These include 'rising star’ investments, i.e. companies that the portfolio managers expect to be upgraded to the IG segment in the near future. Furthermore, the portfolio management team focuses on relative value as a performance driver. The relative attractiveness of the bonds is evaluated by taking into account credit quality, capital structure and technical market conditions, among other factors.
The forward-looking sustainability analysis of each company, as one component of the investment process, also plays a role in the bond selection. This analysis includes an assessment of whether any future improvement or deterioration in ESG factors expected by the portfolio manager have already been identified and priced in by the market.
Hanspeter Diem, Head of Sales, explains: “With our new fund, we are targeting investors who are looking for additional returns in the bond sector and prefer the defensive characteristics and liquidity of the investment grade segment.”
The FISCH Bond Global IG Corporates Fund is registered for sale in Switzerland, Germany, Austria, Luxembourg, France, Italy, Belgium, Liechtenstein, Spain and the Netherlands. Currency hedged share classes are available in CHF, EUR and USD. Fisch Asset Management currently manages around CHF 4.9 billion (EUR 4.4bn) of client assets in corporate bonds, including dedicated strategies in the high yield and emerging market segments.