Vontobel Launches High-Yield Corp. Bond Fund

Jun 11 2012 | 8:53am ET

Responding to an investment environment characterized by low-yields, inflationary pressure and limited opportunities for diversification, Switzerland’s Vontobel Group has launched a high-yield corporate bond fund.

Targeting an annual return of 5% to 9% (measured over the entire economic cycle), the Luxembourg-domiciled fund will be run by Stefan Chappot and focus on high-yield corporate bonds with credit ratings from BB+ to CCC-. The fund will attempt to produce similar returns to equities—thereby offer a hedge against inflation—but with a lower degree of risk and volatility than equities.

Said Christophe Bernard, chief strategist of the Vontobel Group, in a statement:

"With interest rates so low and massive public debt, government bonds have become less attractive. At the same time equities are very volatile and set to move sideways in the medium term. In such an environment, high-yield bonds offer a good alternative for investors searching for attractive returns."

The Vontobel Group is a Swiss private bank first established in Zurich in 1924. Vontobel specializes in wealth management for private clients and asset management for institutional investors, as well as in investment banking. As of 31 December 2011, the group held CHF 132 billion of assets.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Strippers Accused Of Robbing Hedge-Fund Manager Face Jail

Oct 20 2014 | 9:20am ET

A group of alleged stripper-thieves—whose victims include a hedge-fund manager...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.