Ashmore has launched its Emerging Markets Frontier Blended Debt SICAV, which is a sub-fund of its Luxembourg-domiciled Ashmore SICAV UCITS fund.
The mandate, which will invest in debt securities across hard currencies, local currencies and FX instruments, aims to achieve attractive yield, growth from economic improvements across frontier markets, and a low average duration in order to reduce interest rate risk.
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Alexis de Mones, portfolio manager at Ashmore Group, said: “Lower foreign investor participation in EM frontier debt markets has led to an increase in borrowing costs across many of these markets, and this fund provides investors with access to the high-yield opportunities that we are seeing as a result.
“Our extensive experience and deep relationships in these countries position us very well to capitalise on the attractive risk premia and economic turnaround stories that these markets offer.
“The hard and local currency frontier markets offer very distinct returns profiles over different parts of the cycle, and this will provide us with opportunities to manage the fund actively and reduce the level of volatility.”
For a UK adviser, the management fee on the fund is 0.75%. If the investment exceeds $200m, the fee then drops to 0.45%.
