Russell Investments launches EMD local currency fund
Global asset manager Russell Investments has launched an emerging market debt local currency fund.
The Dublin-based fund will be jointly managed by Stone Harbor Investment Partners and Pictet Asset Management.
The two managers have been selected for their strong expertise in the area, Russell says. Their complementary styles are expected to deliver strong risk-adjusted returns.
Local currency emerging market debt is a significant growth area, which offers attractive yields compared to developed markets, as well as the potential for currency appreciation.
Russell portfolio manager James Mitchell says: “There has been a great deal of change in the world of emerging markets investment and there is strong investor interest in the local bond markets.
“Strong economic growth, improved and sustainable fundamentals, and variety of local debt markets available, makes investing in this asset class an attractive complement to other fixed income and equity exposures.”
The new fund is benchmarked against the JP Morgan GBI-EM Global Diversified index. The annual management charge at launch is 1%.
Russell Investments is a global asset manager with over $159bn in assets under management and a total of $2.4trn in assets under advisement.
It is headquartered in Seattle in the US and has offices around the world including Beijing, Dubai, Frankfurt, London, Melbourne, Tokyo and Toronto.