bny mellon launch em debt fund through standish

Through its Standish boutique, Bank of New York Mellon is to launch a new emerging market debt opportunities fund.

bny mellon launch em debt fund through standish


The fund will be called the BNY Mellon Emerging Market Debt Opportunities Fund.

At a recent conference, Kozhemiakin alluded to the fact emerging market debt (EMD) analysts should be able to look across the emerging market spectrum at local sovereign debt as well as dollar-denominated sovereign and corporate debt.

The one segment missing, he said, is EM local currency corporate debt which does not currently exist when you strip out issuances below $500m.

He added that this makes the investable EM debt universe $25bn, not the $1trn market some commentators suggest.

Most of the limited opportunities sit in the offshore remninbi or dim sum bond market, he said, and the lack of real opportunities means liquidity in local currency EM bonds is highly constrained.

For this reason he does not envisage investing in the asset class for at least the next two to three years.

Standish already runs the BNY Mellon EM Debt, EM Debt Local Currency and EM Local Currency Investment Grade Debt funds with approximately $4.2bn invested across the three mandates.

The EM Debt Local Currency Fund is the largest with $3.4bn of assets and has been running since 2006. The EMD Fund launched in 2005 and has $424m, while the EM Local Currency Investment Grade Debt Fund launched in June 2011 and has $292m of assets.


Latest Stories