AllianceBernstein extends EM fund range
AllianceBernstein is the latest manager to extend its emerging market fund offering with three new launches, as global money managers turn to emerging economies for superior returns.
The three new funds – Emerging Market Corporate Debt, Asia Pacific Income Portfolio and Emerging Market Local Currency Debt – add to the firm’s existing $21bn EM debt portfolio.
The launch follows just days after Swiss asset manager Swiss & Global Asset Management unveiled its first dedicated corporate bond fund investing in emerging markets. Earlier this summer, Baring Asset Management also added a new EM corporate bond fund to its range.
With these launches, managers are responding to demand from investors looking to diversify their exposure to emerging regions from traditional sovereign debt.
AllianceBernstein’s corporate debt portfolio invests primarily in corporate debt of emerging market issuers, and uses sovereign and quasi-sovereign issuance only selectively in order to improve liquidity. The EM local currency debt portfolio looks to benefit from expected appreciation of local currencies.
The Asia Pacific income portfolio combines Asian government and corporate debt with currency exposure for those investors looking for multi-sector exposure.
Fund manager Shamaila Khan said: “Many investors have turned to emerging market government debt as an investment option, but still perceive emerging market corporate bonds as an immature asset class. The stock of emerging market hard currency corporate debt exceeds its sovereign counterpart, however, and often offers better fundamentals and more attractive yield than developed country corporate bonds.”