Paris, November 21, 2024 – IVO Capital Partners, a French independent asset management firm specializing in emerging market bonds, announces the launch of the IVO IG 2030 fund, building on the success of its range of funds dedicated to emerging market corporate debt, and in particular its IVO 2028 fund. This new product reflects the rise in interest rates in the United States, which has led to an upward adjustment of bond yields in the emerging market investment grade asset class, in the form of a fund with an average maturity of investment grade . The IVO Capital Partners teams’ extensive expertise in the emerging market bond universe, cultivated since 2012, has also led to several of its funds being selected by insurance companies.
- A new Investment Grade fund dedicated to companies in emerging countries, offering diversification for the European investor
IVO IG 2030 is an emerging market corporate debt fund in hard currencies, offering a gross yield to maturity of 6.8% in USD and 4.8% in euros (as of November 20, 2024). Classified as SRI 2, this sub-fund is held within a French SICAV authorized by the French Financial Markets Authority (AMF) on October 11, 2024.
IVO IG 2030 invests in emerging market issuers across approximately 30 countries and offers exposure to a multitude of key sectors – such as industrials, infrastructure, the power sector, and senior financial bonds – providing European investors with complementary sector and geographic diversification opportunities. With its fixed-maturity structure and IG rating, which reduces credit risk, it fixes and locks in a gross yield to maturity (December 31, 2030). Credit risk gradually decreases as the maturity date approaches, giving investors visibility into performance and the risk involved. The product remains open for subscriptions and redemptions until maturity, allowing for arbitrage and the seizing of opportunities that may arise in the primary market, which is expected to be very active again in emerging countries in 2024. IVO Capital Partners’ bond strategy is based on in-depth fundamental analysis and favors issuers with solid fundamentals, in line with the ESG standards of Article 8.
- Several funds in IVO Capital’s bond strategy are now referenced by leading insurance companies.
The richness and dynamism of the asset class, combined with the expertise and experience of the IVO Capital Partners teams, have led leading insurance companies to include several IVO Capital Partners unit-linked funds in their life insurance, capitalization, and retirement contracts. For example, IVO Capital Partners’ historical flagship fund
- The strong growth in IVO Capital Partners’ assets under management during 2024 validates its ambitious development strategy and its expertise in the emerging market.
IVO Capital Partners currently has €1.2 billion in assets under management in the emerging markets asset class, is posting positive performance (between 9.3% and 11% as of mid-November), and has recorded €306 million in new funds raised by the end of October 2024. This growth is driven in particular by its target-date fund , IVO 2028 (€178 million in assets under management) , and its flagship fund , IVO Emerging Markets Corporate Debt (over €800 million in assets under management) , formerly known as IVO Fixed Income . With this new fund, the firm is strengthening its product strategy to allow its clients to expand their investment universe to include investment-grade assets.
The expansion of its product range further solidifies IVO Capital Partners’ position among the key players in the emerging bond market. To meet the demands of this vast investment universe, comprising over 1,700 issuers across more than 50 countries, the firm leverages the expertise of 12 professionals in its dedicated management team and over a decade of market experience.
- Positive macroeconomic dynamics offer opportunities to be seized in the emerging bond universe
The launch of IVO IG 2030 comes at a time when interest rates are favorable for carrying the Investment Grade asset class. The rise in US interest rates, triggered by the 2022 bond market crash and, more recently, by the election of President Donald Trump, has led to an upward adjustment of yields on emerging market
“The launch of the IVO IG 2030 fund leverages the attractive returns currently offered by emerging market investment grade bonds. On the one hand, IG yields are at historically high levels thanks to rising interest rates, particularly in the United States on the dollar curve. On the other hand, the IG index incorporates 70% of the bond yield of the High Yield index, a historically high point. The fund’s maturity structure—allowing for an attractive yield to be fixed until maturity on December 31, 2030—coupled with its average investment grade rating (BBB- as of the end of October 2024)—significantly limiting credit risk—makes it a defensive carry product, uncorrelated with risky markets, offering additional protection against crises and uncertainties.” – Thomas Peyre, Portfolio Manager at IVO Capital Partners
“Our in-depth knowledge of the emerging markets allows us to offer a diversified range of products to fully benefit from the richness and dynamism of this asset class. This fund, positioned in emerging market investment grade, complements our predominantly high-yield range for European investors. Its defensive profile and SRI 2 rating lead us to anticipate commercial success similar to the IVO 2028 fund. Our teams are particularly committed to providing clear and accessible explanations to our investor clients, regardless of the complexity of the market in which we operate.” Romain Lippe, Partner and Sales Director at IVO Capital Partners
About IVO Capital Partners
IVO Capital Partners is an independent French asset management company with over €1.6 billion in assets under management. Founded in 2012, it invests in listed and unlisted credit, focusing on emerging market corporate bonds and litigation financing. IVO Capital Partners’ expertise allows its investor clients to access new investment universes with transparency and profitability, and also provides financing to companies based in emerging markets and litigation support to help them achieve redress. The company has 14 nationalities represented among its staff and invests in more than 50 countries.
This is a marketing communication. All data is sourced from IVO Capital Partners. All investments involve risks, including the risk of capital loss. Past performance is not indicative of future results.
Press contact – Chiara Billy Lelandais – chiara@katchreyners.com – +33 6 33 72 75 59
