The Investec GSF Emerging Markets Investment Grade Debt Fund will take between 10 and 20 active long and short positions in investment grade emerging markets sovereign bonds denominated in local currencies. These will be in “relatively more liquid, well developed debt markets”.
Eerdmans believes that yield compression and currency appreciation can combine with attractive yields to present a convincing investment case.
“We strongly believe local currency emerging market debt will do well for many years to come on the back of improving emerging market fundamentals,” said Eerdmans.
“Yields are an attractive starting point and additional returns can be had from capital gains on the bonds as well as the currencies of these emerging markets. This story is increasingly recognised by end investors”.
The fund is domiciled in Luxembourg and has a minimum investment of $3,000.
