BNY Mellon has launched an Emerging Markets Corporate Debt fund to tap into what it sees as the next major structural development in emerging market investing.
The Insight credit team believe they can capture the structural premium available from investing in corporate issuers of similar or better quality to developed market peers, and will focus on issues “of a good size” to mitigate liquidity concerns.
The investment process combines sector valuation and fundamental research from the credit team with a macro overview from Insight’s emerging markets specialist team. The fund will charge an AMC of 1.5% with an initial charge of up to 5%.
McDonagh has managed the $350m Insight Absolute Emerging Market Debt fund since launch, returning 4.06% over the year to 2 March versus an IMA Absolute Return sector average loss of 2.77%, according to FE.
This article was first published on Investment Week