Barings launches corporate debt fund for emerging markets

emerging shoots 410Barings is launching a fund to invest in emerging market corporate bonds, a market that has swelled due to recent issuance.

Faisal Ali, who joined Barings in August 2011, will manage the US dollar-denominated fund, which will seek to increase returns with a currency overlay.

“As the economies of emerging markets continue to develop and mature, supported by favourable demographic and secular trends, high productivity rates and comparatively superior growth rates, we think the local corporate bond market should continue to expand to help finance and fund a growing consumer base,” said Ali.

The fund will be able to buy both investment grade and high-yield corporate bonds and will invest at least 70% of its assets in emerging market debt.

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