LGT Bank has placed a fixed-rate bond issue of 275 million Swiss francs, thus replacing an upcoming maturity. According to the bank, the bond issue met with strong demand, particularly from institutional investors. "This demonstrates that LGT is considered an extremely strong and stable bank," said Josef Rüttimann, head of trading & regulatory bonds at LGT. LGT finances itself in part through bonds. This allows the bank to broaden its investor base and better meet its long-term commitments, as well as meet its regulatory requirements. "The strong demand reflects the high level of trust that investors place in LGT and confirms that we are on the right path," added Mr Rüttimann. The newly issued ten-year bond has a yield to maturity of just under 0.4 percent. The bond will be listed on the SIX Swiss Exchange on 10 May 2017, and will be traded on the secondary market. It replaces the 12 May 2017 maturity.
Jupiter Asset Management has launched an investment trust targeting emerging and frontier market income. The Jupiter Emerging and Frontier Income Trust will be allowed to issue up to £200 million ordinary or C shares in the 12 months from the date of publication of its prospectus. The high-conviction, long-only investment trust will be admitted to trading on the premium segment of the Main Market of the London Stock Exchange, with admission expected in mid-May. The trust will target a minimum dividend yield of 4.0 pence per share in its initial 12 months, rising to 5.5p in the period to September 30, 2018. Its annual fee to the investment manager will be 0.75 percent of its net asset value, with no performance fee. Ross Teverson, head of strategy in Jupiter's Emerging Markets division, and Charles Sunnucks, analyst at the company, will be primarily responsible for the trust's portfolio. Jupiter said the trust will adopt a "benchmark agnostic" approach with a mix of emerging and frontier markets exposure, although the latter will be limited to a maximum of 25 percent of total assets. Jupiter also said it will offer a "more concentrated" exposure than typical emerging-markets funds, with a typical portfolio of 40 to 45 positions.
Goldman Sachs Asset Management (GSAM) said it has become the first asset manager to register foreign investment funds for retail investors in the United Arab Emirates, the firm’s regional hub in the Middle East. The registration follows a new mutual fund regulation introduced by the Emirates Securities and Commodities Authority in 2016, which for the first time authorises asset managers to register foreign mutual funds for distribution by approved local partners. GSAM’s fund range includes equity, fixed income, multi asset and alternative investment solutions, drawing on GSAM’s global investment expertise. Funds offered include the GS US Real Estate Balanced Portfolio, which is a diversified multi asset fund offering exposure to the US housing market and the GS Global Multi Manager Alternatives Portfolio, an absolute return strategy which provides access to a select range of leading alternative managers.
Nikko Asset Management has launched its Emerging Markets Multi Asset UCITS Fund, managed by senior portfolio manager Rob Samson. Through Nikko AM’s partnership with geopolitical risk research and consulting firm Eurasia Group, the fund integrates political insight and analysis in its investment approach. Targeting an excess return of LIBOR plus 5-6 percent over a 3-5 year time horizon, it adopts an active investment approach to a global emerging market portfolio based on thorough fundamental research identifying mispricing in emerging markets. The Nikko AM multi-asset team is located in Asia, a region that spans more than 60 percent of global emerging markets. This latest launch follows the launch of the Emerging Markets Local Currency Bond, Global Credit and Japan Focus Equity UCITS in 2016.
RBC Global Asset Management has proposed changes to the investment objective of RBC Advisor Canadian Bond Fund. Subject to unitholder and regulatory approval, RBC GAM is proposing to change the investment objective of RBC Advisor Canadian Bond Fund to provide the fund with the flexibility to track the performance of the FTSE TMX Canada Universe + Maple Bond Index by investing either directly in fixed-income securities or indirectly through investment in units of other mutual funds managed by RBC GAM or an affiliate. If approved, the name of the fund will change to RBC Canadian Bond Index Fund. The Independent Review Committee of the RBC Funds considered and provided a positive recommendation for the proposed investment objective change, after determining that the changes will achieve a fair and reasonable result for the fund.