Russian bonds: above-market returns with higher credit quality
An actively managed portfolio of corporate and government bonds. We earn the premium to fair yield, not credit risk.
Results by year
In 2022 the portfolio returned 13% with an A rating, in 2023 — 14% with an AA rating, in 2024 — 15%, in 2025 — 34.5%. For comparison, the only public bond ETF, BOND, returned 11.5% and 5.5% in 2022 and 2023 with an average portfolio rating of BBB+.
| Year | Vesper Capital, % p.a. | Portfolio rating | BOND ETF, % p.a. |
|---|---|---|---|
| 2022 | +13% | +11.5% | |
| 2023 | +14% | +5.5% | |
| 2024 | +15% | — | — |
| 2025 | +34.5% | — | — |
Annual returns of the Vesper Capital bond strategy, in roubles, net of fees. Rating — weighted average credit rating of the portfolio. Benchmark — the public BOND ETF, average portfolio rating BBB+. Past performance does not guarantee future returns.
Portfolio parameters
Parameters are fixed by the portfolio management policy and reviewed at least quarterly.
- Return target
- Key rate + 4–7% p.a.; tactical target for 2026 — 20% net of fees
- Duration
- 2–3 years; rebalancing trigger — below 1.5 or above 3 years
- Ratings
- BBB and A — up to 60% combined; AA and AAA — up to 20%; high-yield segment — up to 15%
- Sector limit
- no more than 25% of the portfolio
- Equities
- no more than 10% of the portfolio
- Derivatives
- hedging only, up to 100% of a position; speculation prohibited
- Liquidity
- position no larger than 10 average daily turnovers of the issue (rating A and above)
- Cash
- unlimited — a defensive tool during market repricing
Position size depends on the premium to fair yield
We compute a fair YTM for every bond. The higher the premium of current yield over fair yield, the larger the share — up to the hard limit. Above it the position does not grow, whatever the yield.
- Base sharepremium up to 1%
- Soft limitpremium 3%
- Hard limitpremium 5%
Example: issuer with base share 3%, soft limit 5%, hard limit 7%
Target rating structure
Policy guideline: BBB and A — up to 60% combined, AA and AAA — up to 20%. Reviewed monthly.
Duration under control
Target corridor — 2–3 years. Breaching 1.5 or 3 years triggers an unscheduled rebalancing.
How an issuer gets into the portfolio
Five stages from market filter to position limit. Every issuer gets a profile, an internal rating, a fair yield and three limit levels.
Market filter
After the weekly review we set the required yield for each rating. If none of the issuer's bonds meets it, analysis does not start.
Formal screening
Financial statements, agency ratings, legal and regulatory factors, disclosure quality.
Qualitative analysis
Business model, industry position, beneficiaries and management, corporate quality, key risks.
Quantitative analysis
Revenue, EBITDA, cash flows, debt structure and maturity schedule, interest coverage, cost of funding.
Rating, fair YTM, limits
Internal rating from BBB- to AAA, fair yield on three curve segments, base / soft / hard limit depending on the premium.
Capital calculator
Model capital growth for different annual returns and horizons. The calculation is illustrative: it is not a forecast and does not account for taxes.
Illustrative calculation with annual compounding of reinvested income. Not a guarantee or promise of returns.
Frequently asked questions
Who can invest in the strategy?
Qualified investors, family offices and institutional investors. Minimum ticket — from $500k or the equivalent in roubles.
How is participation structured?
The format depends on your jurisdiction and capital structure: discretionary management, an individual strategy on your brokerage account, or participation through a fund. We agree the exact structure at the first meeting.
In which currency are returns calculated?
The base currency of the strategy is the Russian rouble. Returns in the table are in roubles net of fees. Currency hedging is discussed individually.
How often do I receive reports?
Monthly: portfolio structure by rating, sector and duration, actual return and the manager's commentary. Plus access to the weekly market review.
What happens when the market deteriorates?
The policy allows an unlimited cash share and hedging with derivatives. When yields rise we tighten rating requirements and shorten duration.
Let's discuss your capital
Leave your contact details and a Vesper Capital partner will reach out within one business day. Or message us directly on Telegram.
This offer is addressed to qualified investors. Minimum ticket — from $500k.