Jupiter launches Global Emerging Markets Corporate Bond fund

Jonathan Boyd
Jupiter launches Global Emerging Markets Corporate Bond fund

Jupiter has launched the Jupiter Global Emerging Markets Corporate Bond fund, a sub-fund of the Jupiter Global Fund Sicav.

The fund will be managed by recent recruit Alejandro Arevalo, who joined Jupiter’s fixed income strategy team in December 2016, the company said in a statement announcing the launch.

As an actively managed portfolio, the Jupiter Global Emerging Markets Corporate Bond fund will aim to achieve long term income and capital growth through investment in bonds issued by companies exposed directly or indirectly to emerging market (EM) economies worldwide.

The fund will be benchmark aware but not constrained, using the JPMorgan CEMBI Broad Diversified Total Return (USD) benchmark and will use the dollar as its base currency, Jupiter said.

Arevalo, pictured above, who has more than 18 years’ experience of investing in emerging markets, joined Jupiter from Pioneer Investments where he worked for four years as an emerging markets corporate debt portfolio manager. Prior to this, he worked on emerging market debt strategies at Standard Bank Asset Management, Gibraltar Bank and the International Bank of Miami.

Arevalo works alongside Ariel Bezalel and Jupiter’s existing credit and trading teams, while also collaborating closely with Jupiter’s EM Equity team, headed by Ross Teverson.

The new fund’s process is based on a top-down/bottom-up approach, seeking to identify long term opportunities that could benefit from macro and/or specific events at a sector or company level, Jupiter said. Arevalo will also target outperformance via allocation to sovereigns and local currency bonds depending on market conditions.

‘Steadily expanding’

Arevalo said that the emerging market debt (EMD) universe is “steadily expanding”, particularly with regard to corporate issuance. “EM corporates can offer investors a wealth of attractive opportunities and a host of benefits including diversification, lower volatility and greater liquidity,” he said.

Katharine Dryer, head of investments, fixed income and multi-asset, said: “At Jupiter we have steadily built out our fixed income team over recent years and the decision to move into EMD is part of our long-term strategy in this area. The EMD sector stands out as an area of opportunity for active managers.”