Standard Life launches EMD fund for recently hired team
Standard Life Investments has made a foray into the popular emerging market debt space with the launch of its first EMD fund.
The new fund follows the hire of an EMD team from Threadneedle in April, which officially came on board in July.
The team is headed up by Richard House (pictured), who brought along his two former colleagues – Mark Baker and Nicolas Jaquier – as investment directors.
Rod Paris, the group’s head of investments, said: “The strategic decision to increase our capability in emerging market bonds will enhance the suite of solutions we have designed to help clients achieve their investment targets.”
The new Emerging Market Debt OEIC fund will be benchmarked against the JPMorgan EMBI Global Diversified index.
It aims to provide income, with some capital growth, over the long term by investing primarily in US dollar denominated emerging market debt.
Spurred by the low yield environment across the developed world, investors have shown increased interest in the asset class, keen to access the superior growth of the emerging markets. The investment universe spans 50 countries and now comprises approximately 12% of the global bond market.
The new fund will be available to both retail and institutional investors looking to broaden their investment universe and diversify their portfolios beyond global developed markets.
The team will follows a differentiated investment approach by taking a research driven, top-down view and using detailed country analysis to build a portfolio of their best investment ideas.
Euan Munro, executive director responsible for fixed income, said: “The launch of the EMD fund will enable investors to tap into this growing and diverse sector of the market.
“Richard and his team bring an investment process that is very much in keeping with our ‘focus on change’ investment philosophy.
“They combine quantitative research with broader qualitative and market insights to identify areas of the emerging debt opportunity set where their views are most divergent from consensus, and where there are some identifiable triggers that will cause the market to change its mind.”