Investec opens Bond fund

01 Jun 2007

Investec Asset Management is opening up its top performing Emerging Markets Debt Bond fund to retail investors.

emerging markets

The £24m fund, managed by Peter Eerdmans and launched last year, will make retail A-class shares available from 1 June, in addition to the existing S class shares for institutional investors.

The manager invests in local debt and currencies and can take long and short positions on different emerging markets. Mr Eerdmans said: "In our countries, the starting yield is a bit higher than dollar debt, on average, and we also have the additional potential through currency appreciation."

The team uses quantitative systems as well as top-down and sector analysis to rank countries. It invests in the top rankings and goes short in the bottom rankings.

The fund has 20 to 30 active positions compared with its JPMorgan Government Bond - Emerging Markets benchmark and invests in roughly double the countries in the index.

The fund's long positions include Brazil, Indonesia and Turkey. It also has exposure to the currencies of several African countries including Ghana, Egypt and Nigeria.
Source :
http://ftadviser.com/dt_frontia.aspx?m=11182&amid=113614