Vontobel Asset Management has launched a GBP share class of a global investment grade credit fund, providing UK investors access to the fund as it approaches its fifth anniversary.
The Vontobel Fund - Global Corporate Bond Mid Yield has grown to £430m assets under management since its launch in October 2015 and provides investors access to a "broadly diversified global corporate bond fund".
Investing in "high credit-quality issuers", the fund seeks to generate income over the long-term and utilises a global portfolio to provide diversification across the credit cycle.
Christian Hantel, senior portfolio manager at Vontobel Asset Management, said: "Bonds from the same issuer, denominated in different currencies, often exhibit price discrepancies creating relative-value opportunities.
"By aiming to identify the most attractive bonds across the main currencies, we are able to extract value for our investors, with the currency risk fully hedged.
"Also, a key driver of returns are bonds with the potential of a rating upgrade to the mid-yield range. This gives us the opportunity to invest early and profit from the spread contraction as the bond climbs up the rating ladder."
Sheridan Bowers, head of UK and Ireland at Vontobel Asset Management, added: "This fund aims to generate steady income and achieve above-average investment returns over a full credit cycle, while respecting risk diversification, which is important to UK investors.
"The fund invests in investment grade corporate bonds denominated in different currencies with various maturities. The focus is on global diversification and selection of individual securities to ensure that the credit spread compensates adequately for the risks involved."