The Emerging Market Debt Unconstrained Fund – active from 22 April – will seek hard and local currency sovereign debt, FX and corporate credit investments across the developing market spectrum.
The fund will work independently of benchmark weighting – a decision that SLI said is in order to maximise risk-adjusted returns and circumvent fundamentals disparity in different economies.
Managers Richard House and Kieran Curtis, emerging markets head and investment director, respectively, will utilise a top-down investment process, supported by the firm’s fixed income and global emerging markets debt teams.
House said: “We believe that adopts an unconstrained approach is the most effective way of exploiting, within a single portfolio, the best opportunities that exist across the subsets of the asset class.
“While the fundamental backdrop is sound for most EM countries, it is important to recognise that this is not universally the case. The lack of an index constraint is also designed to help avoid exposure to or to take short positions in countries which may be experiencing macroeconomic challenges and where asset price performance is expected to be poor.
The launch of the fund takes SLI’s EMD product total to five, joining the Emerging Market Debt Fund, Emerging Market Debt SICAV, Emerging Market Local Currency Debt SICAV and Emerging Market Corporate Bond SICAV funds.
