Ashmore, which oversees over $7 billion (€5.1 billion) in short duration emerging markets debt, is making the asset class available for the first time in a Sicav fund.
The Ashmore Emerging Markets Short Duration Fund is a Ucits IV-compliant Sicav fund, domiciled in Luxembourg.
Alexis De Mones, portfolio manager at Ashmore, will be able to invest in short-term emerging market debt securities and other instruments issued by sovereigns, quasi-sovereigns and corporates, denominated exclusively in dollars and other G7 currencies.
She will seek to maintain a weighted average portfolio duration of between one and three years.
“The fund offers investors the potential for more stable income generation with lower volatility than traditional debt portfolios,” De Mones says. “It invests in securities with shorter maturities, creating natural income generation from coupons and maturing bonds paid out to investors via regular monthly dividend distributions.
“It offers an attractive risk/reward profile, allowing investors to still capture a meaningful yield while keeping average duration low and can offer a higher average credit quality than equivalent short-dated US or European portfolios.”
The fund will be available through institutional and retail share classes across a variety of currencies.
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