Standard Life launches EM debt fund despite downturn

DragonStandard Life Investments has launched a second Global Emerging Markets Debt fund for retail and institutional investors in Europe.

Managed by Kieran Curtis, the new local currency fund is part of a selection of funds planned for the new emerging market debt team.

It complements the Oeic fund launched in October last year and is initially only available to investors in the UK, Switzerland, the Netherlands and Luxembourg.

Standard Life plans to register the fund in other European countries later.

Euan Munro, head of multi-asset investing and fixed income, acknowledges that in recent weeks some emerging market currencies have experienced depreciations against hard currencies such as the dollar.

“We recognise that the fundamental backdrop of some countries has deteriorated; therefore investors need to be discerning when they think about emerging markets which ties into our active approach to emerging market debt portfolio management,” says Munro.

“Despite recent wobbles, money flows into the asset class have been consistently positive over the last few years and it now comprises a significant proportion of the global bond market, around 12%.”

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