EUROPE - Value specialist Ashmore Investment Management has unveiled a new SICAV fund for European institutions seeking diversification and yield away from chaotic developed markets.
The Luxembourg registered Ashmore Emerging Market Debt Fund is an open-ended SICAV (Société d'Investissement à Capital Variable), or mutual fund, with daily dealings in both US dollars and Euros. The fund already has a seeding of E28m.
The portfolio will invest primarily in fixed income assets, in G-7 currency (and principally US$) denominated debt instruments from sovereign issuers.
Mark Coombs, managing director at Ashmore, said: “The fund will be modelled on our existing EMLIP fund, which has returned over 19% per annum after fees since its launch in 1992.
“The investment process is exactly the same, largely unchanged for ten years, and the same team [which is] focussed around our investment committee, decides investment strategy for all our products.”
Jerome Booth, head of research at Ashmore, said: “The emerging debt market is one of the few strongly performing asset classes in today’s global environment.
“Emerging debt can offer consistently high returns, good liquidity, half the volatility of European equity, about one tenth the default rate of high yield, negative correlations to global fixed income and low correlation to equities, and unlike any other major credit market is counter-cyclical to the US and European business cycles.”
The fund has both an institutional and retail share class. Minimum investment for institutional investors is E/US$1m.
Crédit Européen will act as custodian, administration agent and principal paying agent. The registrar and transfer agent is European Fund Administration.
The Ashmore Group has around US$4.2bn assets under management and administration, of which US$2bn is in emerging market debt.
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