Liechtenstein royals’ fund looks beyond emerging markets

This year, with asset performance across emerging markets disappointing bulls, LGT, which manages the fund, says it’s shunning popular trades like Mexico or Egypt and is instead looking to take positions in local debt of nations that aren’t in any benchmark indexes. — Bloomberg

LONDON: The US$85bil (RM378bil) firm owned by Liechtenstein’s royal family is sending its cash well off the beaten path to Armenia, Georgia and Angola, where it sees local debt outperforming more popular emerging markets.

Headquartered in Pfaeffikon, Switzerland and fully owned by the Princely House of Liechtenstein, LGT Capital Partners set up its emerging-market and frontier bond funds in 2021 and oversees investments from institutional clients alongside the family. The following year, its local debt fund outperformed 99% of peers, beating them on average by 19 percentage points, according to Bloomberg data tracking about 5,000 emerging-market bond funds.