Vontobel's new fund specialising in high-yield corporate bonds offers a solution to the current lack of investment opportunities.

Given an environment of low yields, inflationary pressure and limited diversification options in both the equity and bond arena, Vontobel has launched a new Vontobel Fund – High Yield Bond. The fund offers investors the opportunity to achieve returns similar to equities, but with a lower level of risk and volatility. With its High Yield Bond Fund, Vontobel is expanding its range of bond products, building on its reputation as "best asset manager for bond funds in Switzerland".

The new fund offers investors access to a broad selection of high-yield corporate bonds with credit ratings from BB+ to CCC-. With a target annual return of 5% to 9% (measured over the entire economic cycle), the fund attempts to produce similar returns to equities and thereby offer a hedge against inflation, but with a lower degree of risk and volatility than equities. The extra yield produced – when compared with government bonds with superior credit ratings – compensates for the associated credit risk.

Christophe Bernard, Chief Strategist of the Vontobel Group, explains: "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."

Further information supporting the thesis above can be found in Vontobel's most recent white paper "Higher yields with a manageable risk", available on our website: http://funds.vontobel.com/EN/Highyield

Product information

Fund name	Vontobel Fund – High Yield Bond
Benchmark	Customized Merrill Lynch High Yield, 50% EUR and 50% USD hedged
Fund currency	EUR
Domicile	Luxembourg
End of financial year	August
Launch date	11.06.2012
Portfolio manager	Stefan Chappot
ISIN code	B: LU0571066462 I: LU0571066975 (institutional investors only)
Annual management fee	1.10% (B), 0.55% (I)

Contact at Vontobel
Media Relations:     Reto Giudicetti     +41 (0)58 283 61 63


Important legal information
This document is for information purposes only and does not constitute an offer to subscribe for shares of the Fund. Subscriptions of the Vontobel Fund, an investment fund under Luxembourg law (SICAV), should in any event be made solely on the basis of the current offering prospectus, the Key Investor Information Document (KIID), the articles of incorporation and the most recent annual or semi-annual report (for Italy also the "Modulo di Sottoscrizione") and after seeking the advice of an independent finance, legal, accounting and tax specialist. For more details regarding the potential risks of this Fund, please refer to the current full prospectus. Interested parties may obtain the abovementioned documents and the list of benchmarks free of charge from the representative in Switzerland: Vontobel Fonds Services AG, Gotthardstrasse 43, 8022 Zurich, the paying agent in Switzerland: Bank Vontobel AG, Gotthardstrasse 43, 8022 Zurich, the paying agent in Austria Bank Vontobel Österreich AG, Rathausplatz 4, 5020 Salzburg, the paying agent in Germany: B. Metzler seel. Sohn & Co. KGaA, Grosse Gallusstrasse 18, 60311 Frankfurt/Main, from the authorized distribution agencies and from the offices of the fund at 69, route d’Esch, L-1470 Luxembourg. They may also download these documents from our website at funds.vontobel.com.

Past performance is not a reliable indicator of current or future performance. Performance data take no account of the commissions and costs charged when units are issued and redeemed. The return of the Fund may go down as well as up due to changes in rates of exchange between currencies.