The fund is run by Peter Schiff and Jim Nelson, portfolio manager, the same team that oversees the firm’s other fund, the EuroPac International Value Fund.
Catering to investors who seek non-dollar exposure, the fund will concentrate on bonds from countries with positive macro-economic fundamentals.
According to Euro Pacific, selection criteria include favorable GDP growth estimates, positive trade balances, high real interest rates, low debt-GDP, low unemployment rates and favorable demographics.
Resultantly, the fund will typically be underweight Western Europe and Japan, and overweight emerging markets and the resource economies.
The fund will invest primarily in investment grade government bonds, with the remainder in what the managers believe are undervalued corporate bonds, said Euro Pacific.
Due to the current low interest rate environment, the initial preference will be for short duration bonds.
