A number of UK pension schemes have invested in a newly launched Payden & Rygel hard currency emerging market bond fund.
Payden said institutional interest in the asset class was a reason for launching the Payden Global Emerging Markets (Hard Currency) Fixed Income Fund, which has initial funding of £68 million (€75 million) from UK-based pension schemes.
“We have a positive outlook on the emerging market debt asset class, supported by attractive valuations and institutional inflows to the sector,” said Kristin Ceva (pictured), head of Payden’s emerging markets debt team.
The fund has a yield to maturity of 6.7%, a BB average credit quality and is invested in around 50 countries in Latin America, Europe, Asia and Africa.
A US onshore equivalent of the newly launched Irish-domiciled Ucits product had “proved to be one of the most consistent performers” in its peer group with a 20-year track record.
Payden said it was also applying ESG criteria to the fund.
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