Finish asset manager Aktia Asset Management and German Universal Investment have launched a new local currency emerging market bond fund.
The launch follows a recent announcement that both firms had entered into a strategic partnership aimed at distributing Aktia funds to the German market.
The Aktia EM Frontier Bond sub fund has now launched on Universal Investment’s Sicav Platform, it is based on Aktia’s existing frontier market strategies, which have a track record of more than ten years.
The new sub fund invests exclusively in local currency denominated frontier market bonds. It pursues an unconstrained, macro-driven absolute return approach using instruments such as inflation indexed bonds and FX derivatives. Its investment horzion currently encompasses 100 countries, compared to the benchmark index, which only includes 15 countries.
The fund is available for retail and institutional investors at an issuing premium of up to 3% and running costs of 1.8%.