ING Investment Management Americas is launching a globally focused fixed-income fund that is expected to outperform market benchmarks by investing in debt securities for its institutional clients, the firm said Tuesday.
The ING Global Bond Collective Trust Fund, which was launched today, will look to incorporate ING’s money management arm’s own study of the ups and downs of the global fixed-income market since 2006. It will rely on its “fundamental and quantitative analysis in seeking out opportunities in more than 20 countries around the world,” the Sept. 28 press release said.
“Institutional investors are increasingly recognizing global bonds as a way to diversify their portfolios and as a source of alpha,” Erica Evans, senior VP and head of the U.S. Institutional Business at ING Investment Management, said in the release. “…We believe that there will be considerable opportunity in global bonds over the next years and that this asset class will continue to provide favorable results over a market cycle.”
In a brief analysis of the new bond product, ING Investment Management explains in the statement that it will commit capital to sovereigns, corporates, emerging markets, high yield and mortgage-backed securities.
Additionally, it will utilize a three-pronged approach in order to “generate excess returns” by including duration and yield curve, active currency management and broad sector rotation for consideration under the fund’s umbrella.
Currently, ING Investment Management has more than $224 billion in assets under management in the U.S., Canada and Latin America, the press release said.