The Ireland-domiciled Emerging Markets Short Duration Bond Fund will invest in a diversified portfolio of short-duration investment grade and high yield corporate bonds from emerging markets-focused issuers.
“Many emerging market companies are in better financial shape than those in developed markets, with less debt and higher cash balances,” said Hyland.
“Governance and transparency have also generally improved with time. Over the past few years the credit ratings of emerging market issuers have converged to a large extent with those of developed market issuers – yet coupons and yields remain more attractive. Emerging market debt’s correlation with developed markets is also typically low, giving investors the potential to enhance returns while reducing overall portfolio risk.”
CEO and founder George Muzinich hinted at the launch earlier this year when, speaking to Portfolio Adviser, he said his managers would be putting more emerging market credit into portfolios that allow it.
He said: “People know us as competent and trust worthy people that prudently invest in corporate credit. And we will give them the choice whether they want to invest in Europe, in the US, and in the emerging market space; whether they want shorter duration, more standard duration, but it’s all in corporate credit.”
