Coeli Frontier Markets Fixed Income

Yield in frontier bonds

The fund aims to achieve high yield returns by investing in sovereign and corporates debt of issuers in global Frontier Markets. We define Frontier Markets as relatively young and small sovereign issuers, which are less developed than traditional Emerging Markets. The fund offers investors access to returns from a portfolio of independently high yielding bond instruments, from countries with attractive long term growth prospects. The strategy combines country selection and structured portfolio management, with instruments being selected on criteria including improving governance, economic growth and access to funding.

Current Opportunity (March 2023)

Fund offers exposure to a niche high yield asset class:

• Among highest yields in credit (above 13%)
• Providing funding to countries in need
• Outperformed global equities and EM bonds (15 years)
• Attractive valuations after 2022 correction
• Frontier debt only dedicated team

Strategy Features

• Fund invests primarily in hard currency sovereign bonds and quasi-sovereign bonds
• Core investment universe is represented by over 30 countries as defined in JPM NEXGEM index, representing the smaller and high yield rated emerging market subset
• Investment process focuses on selecting country exposures with positive momentum in terms of their economy, funding and politics
• Process captures premiums from curve roll-downs, quasi-sovereigns, new issues and special situations

ESG Approach

• Funds countries most in need supporting SDG #1 (No Poverty) and SDG #2 (Zero Hunger) and actively promotes Gender Equality (SDG #5)
• Report fund’s average of Women in Parliament ratio and number of engagements

➜ For more information: frontierfi@coeli.com