Emerging Markets asset manager Ashmore that manages US$51.8 billion has launched a SICAV Emerging Markets Frontier Blended Debt Fund.
The fund, which is a sub-fund of the Luxembourg-domiciled Ashmore SICAV UCITS Fund, aims to maximise total returns by investing in transferable debt securities issued primarily by sovereign issuers within frontier emerging markets.
It will invest in hard currency, local currency debt and foreign exchange instruments.
Alexis de Mones, Portfolio Manager at Ashmore Group, said: “Lower foreign investor participation in EM Frontier debt markets has led to an increase in borrowing costs across many of these markets, and this Fund provides investors with access to the high-yield opportunities that we are seeing as a result.
“Our extensive experience and deep relationships in these countries position us very well to capitalise on the attractive risk premia and economic turnaround stories that these markets offer. The hard and local currency Frontier markets offer very distinct returns profiles over different parts of the cycle, and this will provide us with opportunities to manage the fund actively and reduce the level of volatility.”
