Vontobel Asset Management has announced the launch of a new Global Bond fund, aimed at offering investors facing the new Basel III liquidity coverage requirements(LCR) a profitable investment opportunity for liquidity reserves.
Domiciled in Luxembourg, the new Euro denominated fund will be managed by Anna Holzgang, head of the Global & Swiss Bonds team at Vontobel Asset Management. According to Vontobel, the fund has already raised €55m in commitments from local savings – and cooperative banks.
“As a result of the current negative yield environment, the LCR portfolio has turned into a real cost-factor” comments Christian Hoeg, managing director at Vontobel Asset Management. “Investors only need to convert 25% of their LCR into this strategy in order to turn it into a cost-neutral position” he claims.