Swisscanto has launched the Swisscanto (CH) index bond fund emerging markets hard currency fund on 12 February 2018.
The fund is managed on a passive basis and invests primarily in USD denominated government bonds and emerging market government debt. The objective of the fund is to track the return and risk characteristics of the benchmark index J.P.Morgan EMBI Global Diversified. The Index currently has a yield of approximately 2.8% (hedged in CHF) with a duration of 6.8 years and an average rating of BB +.
The investor gains access to a strongly growing and now established asset class with this product. Especially in the current low interest rate environment, it offers the customer an attractive yield on maturity.
As a result, an indexed product is available to investors even in the non-investment grade area.
By focusing on issues in USD, the client avoids risks associated with fluctuations in local emerging market currencies.