The fund will invest primarily in bond securities and emerging market currencies. The majority of the bonds will be denominated in local currency, and issued or guaranteed by governments, financial institutions or companies in emerging markets.
It is initially available to investors in the UK, Switzerland, the Netherlands and Luxembourg, and will be registered in other European countries in due course.
It will be managed by Kieran Curtis who joined the firm in March from Aviva.
Euan Munro, head of multi-asset investing and fixed income, Standard Life Investments, said: “The active currency exposure within the new fund provides an opportunity to further enhance returns and the improving credit ratings of EM countries has led to greater liquidity and less volatility.
“Despite recent wobbles, money flows into the asset class have been consistently positive over the last few years and itnow comprises a significant proportion of the global bond market, around 12%.”
The new fund launch comes shortly after that of the firm’s EMD OEIC which was brought to market in October.
It has around £50m under management, of which the largest proportion is invested in the Americas (36.9%). Its performance over the past year is shown below.
true
