With investors facing ongoing low interest rates and uncertainty about the pace of rate increases, Ivy Investment Management Company (IICO) has introduced a fund that seeks to provide a positive total return over the long-term across all market environments.
The new Ivy Targeted Return Bond Fund has the flexibility to invest in any form of debt security issued in the US or internationally. The fund is managed by a team of five portfolio managers with Pictet Asset Management. Lead portfolio manager is Andres Sanchez Balcazar of Pictet SA, Co-Head of Pictet’s Global & Regional Bonds Team. Pictet also subadvises the Ivy Emerging Markets Local Currency Debt Fund.
“Investors need a way to balance risk and return across the economic cycle,” says Thomas W Butch, President and CEO of Ivy Funds Distributor, Inc. “The Ivy Targeted Return Bond Fund provides the potential to gain consistent returns from diversified fixed income securities while managing volatility.”
According to its prospectus, the Fund may invest in any form of debt security, including corporate, US and foreign government securities, and may hold up to 50% of its assets in high-yield bonds.
“We do not rely on economic forecasting. Instead, we seek to identify long-term themes that are based on facts and are quantifiable,” says Balcazar. “Our aim is to build a robust portfolio that is liquid, well diversified and independent of a single scenario or forecast.”
