Interview on high-yield bond investing.

1. June 2015 - For institutional investors only Vontobel Asset Management 1/2
JUNE 2015VONTOBEL ASSET MANAGEMENT
The Vontobel Fund – High Yield Bond reaches its third an-
niversary at a time of increased interest in the fixed income
markets. Portfolio manager Stefan Chappot discusses the
growth of the fund and why their team has been so suc-
cessful in delivering superior returns to the fund’s investors
during the past three years.
Congratulations on the third anniversary of the fund. Let’s
put you on the spot immediately. Why is now an opportune
time to invest in the fund?
Thank you and it’s an easy question to answer. Any time is a
good time to invest in high-yield bonds. The large coupons
high-yielders pay is key. In fact, over the long term, high-
yield returns are primarily driven by the steady and reliable
coupon income. It’s precisely this reason that the asset class
should be part of the allocation of any diversified portfolio,
particularly in today’s low-yield environment.
“Our clients are happy because we are
generating value for them.”
If you look back on this three year journey now, what are the
strengths of the fund?
Our overall setup is our greatest strength. We’ve been suc-
cessful in building up a team of experienced professionals
with complimentary backgrounds. This enables us to success-
fully implement our global and flexible approach, to find the
most attractive segments in the global high-yield market. Fi-
nally, the team follows a robust investment process, which is
the basis of achieving repeatable results.
“Any time is a good time to invest
in high-yield bonds.”
Stefan Chappot
Senior Portfolio Manager of the
Vontobel Fund – High Yield Bond
Stefan Chappot joined Vontobel Asset Management in
March 2012. He is responsible for the management of the
Vontobel Fund - High Yield Bond. Prior to joining Vonto-
bel, Stefan Chappot held a position in Credit Research at
Clariden Leu for one year. In this role he advised clients
and portfolio managers on credit investments, focusing
on European issuers of medium credit quality. From 2003
to 2010, Stefan Chappot was Credit Analyst and Credit
Portfolio Manager at Pemba Credit Advisers. In these po-
sitions, he analyzed and managed portfolios of European
high yield bonds and leveraged loans. Prior to that, he
held various positions at Zürcher Kantonalbank. Stefan
Chappot holds a Masters of Arts in Business and Finance
from the University of Zurich.
A coffee
with
Stefan Chappot
“Higher Income From High-Yield Bonds”
What do you see as the key areas of interest for high-yield
in the near future?
This is an important point to bear in mind: Investing in high-
yield bonds is more about company-specific factors and bond

2. Vontobel Asset Management
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www.vontobel.com/am
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.
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L-1528 Luxembourg. They may also download these documents from our website at vontobel.com/am.
The Fund and its subfunds are included in the register of Netherland›s Authority for the Financial Markets as mentioned in article 1:107 of the Fi-
nancial Markets Supervision Act (“Wet op het financiële toezicht”). In Spain, funds authorised for distribution are recorded in the register of foreign
collective investment companies maintained by the Spanish CNMV (under number 280). The funds authorised for distribution in the United Kingdom
can be viewed in the FCA register under the Scheme Reference Number 466623. 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.
An investment in a sub-fund of the Vontobel Fund carries various risks which are explained in the sales prospectus. In particular, we wish to draw
your attention to the following risks:
• Investments in riskier, higher yielding bonds are generally considered to be more speculative in nature. These bonds carry a higher credit risk and
their prices are more volatile than bonds with superior credit ratings. There is also a greater risk of losing the original investment and the associated
income payments.
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valuations than it is about top-down considerations. That
said, opportunities are created when major market events rai-
se the level of uncertainty and thus volatility in specific seg-
ments of the market.
The current situation in the US energy sector is a great ex-
ample. There are some fantastic long-term investment oppor-
tunities in that sector at the moment. The challenge is to find
A coffee with
Stefan Chappot
those companies that will most likely survive this downturn
but whose bonds currently trade at stressed levels. That’s our
job, that’s what we do.
What have been the highlights for you as the portfolio ma-
nager during the past three years of managing this fund?
Our clients are happy because we are generating value for
them. That is, without a doubt, the highlight. Proof of this
trust in our abilities is that our investors have continuously
been increasing their exposure over the years as the fund has
performed very well in both up and down markets, compa-
red both to global high-yield fund peers and to benchmarks.
We are very grateful for the support and the trust that our
investors place in us, and we are working hard every day to
generate outstanding long-term results for them.
“The asset class should be part of the
allocation of any diversified portfolio,
particularly in today’s low-yield
environment.”
Being committed to an active investment style means
investing on the basis of our convictions. We do not
therefore rely on market opinion or benchmark indices.
Vontobel Asset Management