New Offerings in the Emerging Markets Debt Space

FUND TIMES: Among the new funds launched this week were several additions to the emerging markets debt space

Holly Cook 15 April, 2011 | 6:46PM
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Among the week's top fund industry news is the launch of several new funds, focused in the emerging markets debt and energy spaces.

Company Movers & Shakers
Liontrust Asset Management has sold its fixed income division just two years after its inception to Avoca Capital Holdings, leaving it focusing solely on UK and European equity funds. The sale, which is in exchange for 3.75% of the assets under management (£3.2 million), sees the four-strong credit team including Head of Fixed Income Simon Thorp move to Avoca. Liontrust’s two fixed income funds, the Liontrust Credit and Liontrust Credit Absolute Return funds are also included in the sale.

Fund Movers and Shakers
Artemis Investment management has launched a new energy fund. The Artemis Global Energy fund will invest in around 30 stocks with the aim of providing long term capital appreciation by investing in publicly-listed companies in the oil & gas sector, energy transmission, generation and renewables. The fund will also invest in private companies with clear IPO plans. It is benchmarked to the MSCI All Countries Energy Index. The fund’s geographic and sector exposure will be driven by stock selection.

The UCITS III fund is available in a sterling class to retail and institutional investors. It carries an initial charge of 5.25% and an annual management charge of 1.5% (0.75% for institutional class).

F&C is soft closing its global convertible bond range, including its flagship F&C Convertible Bond fund following substantial inflows. Anja Eiking, Head of Global Convertibles at F&C, commented: “We remain positive about the outlook for convertibles however the market has recently seen lower overall volumes, new issues have been smaller in scale and generally at the lower quality end. In addition, several outstanding convertibles have been ‘called’ by issuers, which has an impact on the opportunities available in this specialist asset class.”

The Convertible Bond fund has achieved 3-year annualised trailing returns of 12.84%, according to Morningstar data, with a total return of more than 3% in the first three months of 2011.

Investec is to launch two emerging markets debt funds, just two months after expanding the range with two more funds. Head of Emerging Markets Debt Peter Eerdmans will his team will manage the Investec GSF Emerging Markets Hard Currency Debt fund, while Co-Head of Credit Theo Stamos and his team will run the Investec GSF Emerging Markets Corporate Debt fund. Both funds, which are Luxembourg-domiciled, were launched today.

Threadneedle has also expanded its emerging market debt range with a Luxembourg-domiciled SICAV emerging market corporate bond fund. The fund will target a total return from income and capital preservation investing principally in debt issued by emerging market companies and companies conducting a significant part of their business in emerging markets. The new fund will be a joint venture between Threadneedle’s emerging market, investment grade and high yield credit teams, as well as other fixed income specialists.

Richard House, Head of Emerging Market Debt believes the emerging market corporate debt market will see significantly growth over the next few years and offers a significant yield pick up over sovereign debt.

A former Gartmore duo are rumoured to be about to launch a hedge fund. Whilst not wanting to put our weight behind the rumour mill, Guillaume Rambourg only a few weeks ago confirmed that he was considering several options that would see him return to investment management. Should they turn out to be accurate, this week’s reports that Rambourg and former colleague Roger Guy are preparing to launch a hedge fund will likely attract much attention.

The duo formerly managed Gartmore’s European large-cap team and over £5 billion of hedge fund assets, but left Gartmore last year. Rambourg resigned in July after rejoining the asset manager following an investigation into alleged trading infractions, while Guy’s departure was announced in November alongside the CIO’s resignation and a strategic review that eventually led to the company being taken over by Henderson.

Personnel Movers & Shakers
Asset manager MAM Funds has attracted Schroder’s Head of UK Retail Sales, Neil Bridge, to join MAM as Head of Business Management and Gartmore Marketing Manager Mark Harper to join as Head of Marketing. The two appointments will take effect on May 4 and May 30, respectively.

Invesco Europe CEO and EFAMA President Jean-Baptiste de Franssu has resigned from Invesco after 15 years at the helm of the European business and will leave at the end of June, according to a report late Friday in Ignites Europe. James Robertson, Senior Managing Director and Head of Invesco Perpetual, will head the division following de Franssu's departure.

De Franssu will continue as President of EFAMA until his two year appointment is up in June, when a replacement will be elected at a general assembly on June.

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Holly Cook

Holly Cook  is Manager, Morningstar EMEA Websites

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