Investec Asset Management is to launch the Investec GSF Emerging Markets Blended Debt Fund which will offer both hard currency and local currency investment processes.
The fund, to be launched 1 December, will be run by Investec’s emerging markets debt team headed by Peter Eerdmans.
A Ucits III Luxembourg-domiciled SICAV vehicle, the fund will have access to an “exceptionally wide investment universe of over 50 countries”, and will seek to make tactical allocations between emerging market bonds issued in both local and hard currency, and is able to take positions in emerging markets currencies. This flexibility aims to generate further return opportunities over and above bottom-up country and currency selection. Investec says that historically, through reduced volatility, a blended approach has delivered superior risk-adjusted returns compared with strategies exclusively invested in either local or hard currency debt.
In line with this expansion to the range, on 1 December the existing Emerging Markets Debt Fund will change its name to the Investec Emerging Markets Local Currency Debt Fund to better identify its investment focus, the firm says.
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