LGT Capital Partners broadens fixed income offering in emerging and frontier markets

5 July 2021

LGT Capital Partners (LGT CP) announced today that it has successfully launched two fixed income strategies dedicated to sovereign strategies in emerging and especially in frontier markets. The launch follows the company's announcement in February that it was strengthening its fixed income competence center by adding a Nordic team of six experienced professionals with a long-standing track record.

The two strategies, one emerging market frontier local currency bond strategy and one emerging market hard currency bond strategy, are complementing LGT Capital Partners’ existing emerging market local currency bond strategy, thus enlarging LGT CP’s capabilities and offering for fixed income strategies in emerging and frontier markets. The offering is managed by a team of eight, including the six professionals who joined LGT CP at the headquarters in Pfaeffikon recently. They have been investing in emerging market and frontier market sovereign strategies as a team with a proven track record based on profound experience over multiple market cycles.

With the expanded fund offering, investors gain access to a global frontier markets bond portfolio in local currency, a global emerging markets bond portfolio in local currency as well as a global emerging markets bond portfolio in hard currency. In line with LGT CP’s strong focus on ESG integration, ESG factors are an integral part of the sovereign bond selection process for all three funds.

Access to a highly attractive asset class

As a provider of skill-based investment solutions with a long-term investment horizon, LGT CP is pleased to expand its offering in this asset class, which is highly attractive, especially given the current low yield environment. “The team’s long-term investment approach as well as their disciplined investment style is an excellent fit with LGT CP’s investment beliefs. We are pleased that the experience of the team, the sophisticated investment approach and the attractive investment opportunity attracts investors’ interest as we have seen strong inflows since the very recent launch of the funds,” explains Pius Fritschi, Managing Partner LGT CP.