Earlier this year, two of the world’s specialty value investment firms, Brandes Investment Partners, L.P. in the U.S., and Sparinvest joined forces to establish corporate bonds funds.
The aim is to have to have to Corporate Value Bond fund to be managed by both Brandes Investment Partners and Sparinvest.
Michael Albrechtslund, Sparinvest's managing director, stated the press release : “In recent years we have seen the corporate bond market in Europe expand massively, and at the same time, corporate bonds from Europe, the US and most recently the emerging markets have become an increasingly important asset class for investors seeking good portfolio diversification. We strongly believe that the value investment approach can deliver long-term outperformance for corporate bonds in the same way that it does for equities.”
The fund will be invested globally , with an intended 80 to 120 different bond, while using use the Barclays Capital Global Aggregate Corporate Index as its benchmark.
Albrechtslund continued by adding, “'This new fund is a global corporate bonds product that will tap into the experience of two leading exponents of value bonds investment. Investors therefore do not need to make allocation decisions between geographic regions or between investment grade or high yield. It is a one-stop shop for value within fixed income. However investors should be aware that a value strategy can deliver higher short-term volatility than other approaches.”
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