Four themes that are occurring across the globe have compelled the Ivy Funds to launch a new fixed-income fund, the Global Strategic Income Fund. The opportunity is ripe now for a fixed-income fund that can invest in all bonds markets around the world because “The U.S. dollar is fundamentally weak; inflation, in the U.S. and globally, likely will continue to creep higher for the foreseeable future; global infrastructure build-out bodes well for the debt market; and the value of some foreign currencies is on the rise, providing more potential for income-oriented investors,” said Mark Beischel, CFA, who also manages a similar fund, the Waddell & Reed Advisors Global Bond Fund. Beischel will partner in management of the new fund with Dan Vrabac, senior VP of Ivy Investment Management Company and co-portfolio manager of the new fund.
The new Ivy global fixed-income fund is designed to expand bond investors’ horizon beyond the United States. The Ivy Global Strategic Income Fund has the flexibility to invest in any bond sector, country, rating category, maturity, or currency, as well as potentially invest up to 20 percent of its assets in equities globally, the company says. “The U.S. represents less than half of the global bond market today, and its share is declining,” said Vrabac in a statement announcing the launch of the fund. “The Ivy Global Strategic Income Fund has a broad mandate that allows the managers to attempt to improve returns through a globally diversified fixed-income portfolio, with the added ability to enhance income and return through the use of currencies and equities. Additionally, the greater diversification and derivative capabilities of the fund provide better tools for risk management.”
Vrabac, with 29 years of industry experience, also is a co-manager of the Ivy Asset Strategy Fund, which experienced some of the highest asset flows in the industry during 2007, according to Financial Research Corp. (FRC), and is in the top decile of its peer group over the 1-, 3-, 5- and 10-year periods ended 12/31/07, according to Lipper. Ivy Asset Strategy Fund exercises a flexible strategy in the selection of securities, and is not required to allocate its investments in any fixed proportions. “The Ivy Global Strategic Income Fund approaches the global fixed income market in a manner similar to that with which the Asset Strategy Fund approaches the total global market. Improving bond investors” return while controlling risk will be our key areas of focus,” said Vrabac.