PineBridge Investments Partners with AGF Security on Latin America Corporate Bond Fund

DUBLIN--()--PineBridge Investments Ireland Ltd. (“PineBridge”), a global asset manager focused on active, high-conviction investing, today announced its appointment as investment manager of the Pareturn PineBridge Latin America Corporate Bond Fund (the “Fund”) a Luxembourg domiciled UCITS fund, effective 3 June 2022. PineBridge will delegate day-to-day portfolio management to Administradora General de Fondos Security S.A. (“AGF Security”), a Chilean-based investment manager with $4 billion in total assets under management as of 30 April 2022.

The Fund has a five-year track record (incepted 5 July 2016, with a strategy track record founded in 2012) with $167 million in assets under management as of 30 April 2022, and seeks to provide investors with capital appreciation and growth by investing mainly in Latin American fixed income instruments denominated in USD. Waystone Management Company (Lux) S.A will act as a third-party management company for the Fund, based in Luxembourg.

The portfolio is managed by AGF Security’s Latin America Corporate Debt Strategies team, led by their Chief of Investment Strategy, Lucas Villaseca Naranjo, who oversees the firm’s international fixed income strategies. The Fund is co-managed by Macarena Carné Saba, Head of International Fixed Income and a team of research analysts covering the Latin American corporate bond market. The AGF investment team leverages an established track record and a history of managing investment strategies since 1992. The team will employ deep analysis of markets and issuers to construct portfolios, along with quantitative inputs to further bolster performance consistency.

“Latin American corporate bond exposure may provide investors with an attractive source of yield. Likewise, positive relative valuations and strong company fundamentals may indicate an appealing entry point into these markets for long-term investors,” said Juan Pablo Lira, AGF Security’s Chief Executive Officer.

“The Pareturn PineBridge Latin America Corporate Bond Fund is an extension of our specialized fixed income investment heritage, along with our commitment to serving the investment needs of the local market,” said Adrien Grynblat, a Managing Director with PineBridge Investments’ Global Client group based in Santiago, Chile. “We are pleased to offer this local capability which we believe will serve as a complement to our developed market strategies for our valued clients in Latin America,” he added.

For more information about the fund, visit pinebridge.com.

About PineBridge Investments

PineBridge Investments is a private, global asset manager focused on active, high-conviction investing. We draw on the collective power of our teams in each discipline, market, and region of the world through an open culture of collaboration designed to identify the best ideas. Our mission is to exceed clients’ expectations on every level, every day. As of 31 March 2022, the firm managed US$146.0 billion across global asset classes for sophisticated investors around the world.

About AGF Security

Administradora General de Fondos Security S.A. is a Chile-based asset management subsidiary company of Banco Security, and the sub-investment manager of the Fund. The company offers portfolio management and advisory services to individuals, institutions, trusts, private funds, charitable organizations, and investment companies.

Reference Note

Key Risks: Potential Investors should consider the following key risks before investing in the Sub-Fund

General Risk Profile regarding investment in emerging markets: Potential investors are advised that investing in securities issued by emerging markets companies involve risks which are not generally encountered on the majority of western European or North American or other mature markets. These risks are of the following type: Political: including political instability and volatility; Economic: including high rates of inflation, risks linked to investments in recently privatised companies and currency depreciation, immature financial markets; Monetary: there is a risk of local currency devaluation due to certain unstable political and economic factors in the countries concerned; Legal: legal insecurity and general problems in having rights recognised or enforced; Fiscal: in certain countries fiscal charges can be very high and there is no guarantee of uniform and coherent interpretation of legal texts. Local authorities often have discretionary power to create new taxes, sometimes with retroactive effect. This results in increased volatility and lack of liquidity in investments while the stock capitalisation of these countries is weaker than on mature markets. Credit Risk: This is the risk that the credit rating of an issuer of bonds to which a sub-fund is exposed may be downgraded, thus causing the value of the investments to fall. This risk is linked to the issuer’s ability to settle its debts. The Sub-Fund’s strategy includes investing in bonds issued by issuers with a high credit risk (high-yield securities). Investing in sub-funds that invest in high-yield bonds presents a higher than average risk due to the quality of the issuer. Because of the Sub-Fund’s fundamental emphasis, such investments are generally concentrated in situations where the Delegate Manager believes that the credit profile is improving, so that the issuer’s debt may be upgraded by the rating agencies and so that the issuer may have greater access to the capital markets to refinance at improved terms. Interest Rate Risk: The value of investments may be affected by fluctuations in interest rates, which may be influenced by a number of factors or events, such as monetary policies, discount rates and inflation. As nominal interest rates rise, the value of fixed income securities held by the fund is likely to decrease. Securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. A nominal interest rate can be described as the sum of a real interest rate and an expected inflation rate. Inflation-indexed securities decline in value when real interest rates rise. In certain interest rate environments, such as when real interest rates are rising faster than nominal interest rates, inflation-indexed securities may experience greater losses than other fixed income securities with similar durations. Derivative Risk: The fund may enter into derivatives (including OTC derivatives) for hedging and investment purposes, in compliance with current legislation applicable to UCITS. These financial instruments may add volatility to the performance of the underlying securities and involve peculiar financial risks. OTC derivatives will be entered into in accordance with the Delegate Manager’s criteria and rules, but will expose the fund to the credit risk of its counterparties and their ability to satisfy the terms of such contracts. Tax-Related Risk: The value of an investment may be affected by differences in applicable taxes between countries, such as withholding tax, or by changes in the country’s government, economic policy or monetary policy.

The risk factors described above should not be considered an exhaustive list of risks, which potential investors should consider before investing in the Sub-Fund. For more details on the fund's potential risks please read the Prospectus and Key Investor Information Document at pinebridge.com/funds

Past performance is not indicative of future results. Any views represent the opinion of the manager and are subject to change. Pareturn PineBridge Latin America Corporate Bond Fund (the Sub-Fund) is a sub-fund of a Luxembourg domiciled SICAV operated by Waystone Management Company (Lux) S.A. (formerly MDO Management Company S.A.), authorized and regulated by the Commission de Surveillance du Secteur Financier (CSSF). On 3 June 2022 PineBridge Investments Ireland Limited replaced Administradora General de Fondos Security S.A. (AGF Security) as the Delegate Investment Manager to the Fund. PineBridge Investments Ireland Limited appointed Administradora General de Fondos Security S.A. as the Sub-Investment Manager to the Fund. Performance is representative of I-B in USD. Source for statistics: AGF Security. Source for characteristics: AGF Security. PineBridge Investments is not soliciting or recommending any action based on this material. The value of the units in the Fund and the income accruing to the units, if any, may fall or rise. Fund allocations are inclusive of cash. This document is intended for distribution only to existing and prospective investors for whom it is suitable and does not constitute an offer of units. Its general circulation may be restricted by law. Investors should not assume that this material has been reviewed or endorsed by any regulatory authority.

Before making any investment decision, you must read the Prospectus of the Fund and Sub-Fund, available in English, as well as the Key Investor Information document (KIID), available in one of the official languages of the country.

These documents, as well as the latest annual and semi-annual reports, can be accessed free of charge from our website www.pinebridge.com, from PineBridge Investments Ireland Limited, The Observatory Building, 4th Floor, 7-11 Sir John Rogerson’s Quay, Dublin 2, Ireland Tel: +353 1 697 3919. or from the distributors/local agents mentioned below:

Austria – Paying agent: Erste Bank der österreichischen Sparkassen AG;

Belgium – Financial Services Provider: CACEIS Belgium SA/NV.

Chile – This Unit Class is registered in Chile for Investment by Local Pension Funds only.

Colombia – PineBridge Investments Europe Limited Oficina de Representación is authorised and regulated by The Superintendencia Financiera de Colombia (SFC) to offer, market and promote PineBridge Global Funds.

France – Centralising agent: CACEIS Bank France;

Germany – Paying and information agent: BHF Bank AG. The issue and redemption price of the unit class are published on the PineBridge Investments website https://www.pinebridge.com/en-latam/institution-and-intermediary/fund-range/pinebridge-global-funds

Italy – Paying agent: BNP Paribas Securities Services S.C.A., succursale di Milano.

Spain – The Sub-Fund is authorised for distribution and is recorded in the register of foreign collective investment companies maintained by the Spanish CNMV (under number 686). Distributor: Allfunds Bank;

Switzerland – The Prospectus, the Key Investor Information Document (KIID), the Trust Deed as well as the annual and semi-annual reports of the Sub-Fund may be obtained free of charge on the homepage of the management company or from the Swiss Representative. The Representative and Paying Agent of the Sub-Fund for Switzerland is State Street Bank International GmbH Munich, Zurich Branch, Beethovenstrasse 19, 8027 Zurich. PineBridge Investments Switzerland GmbH is affiliated with the Swiss Chambers’ Arbitration Institution (SCAI), 4, boulevard du Théâtre, P.O. Box 5039, 1211 Geneva 11, Switzerland, Tel: +41 (0)22 819 91 57.

United Kingdom – This document is a financial promotion solely intended for professional investors and has been approved for the purposes of Section 21 of the Financial Services and Markets Act 2000, by PineBridge Investments Europe Limited, an investment management firm regulated in the UK by the Financial Conduct Authority (FCA). The Sub-Fund is a Recognised scheme in the United Kingdom under the Financial Services and Markets Act 2000. UK facilities agent: PineBridge Investments Europe Limited.

US Person – Neither this document not any copy thereof may be sent, taken into, or distributed in the United States or given to any U.S. person.

Asia- For the contact details of distributors/local agents in Asia, please contact your local PineBridge representative.

The Manager may determine to terminate any arrangements made for marketing the Shares in one or more jurisdictions in accordance with the UCITS Directive, as may be amended from time to time

Investors and potential investors can obtain a summary of investor rights and information on access to collective redress mechanisms at www.pinebridge.com/investorrights

The Fund has been given its SFDR Categorisation based on Sustainable Finance Disclosure Regulation 2019/2088 and current law and regulation. Changes in law and regulation, the interpretation of law and regulation, new regulatory technical standards coming into effect and/or changes in regulatory guidance may result in a change of categorisation of the Fund.

Contacts

Brooke Rustad
Direct: +1 646 460 7995
Email: brooke.rustad@pinebridge.com

Contacts

Brooke Rustad
Direct: +1 646 460 7995
Email: brooke.rustad@pinebridge.com