Russell Investments launches local currency EMD fund

Russell Investments has unveiled a local currency emerging market debt fund to be run on a dual mandate by Stone Harbor Investment Partners and Pictet Asset Management.

The London-based multi-manager outfit announced the Emerging Market Debt Local Currency Fund will be Dublin-domiciled and follow a two-manager structure.

In launching the fund, Russell Investments said it was targeting an area of the market where they expect increased growth, with the potential for currency appreciation.

The firm said the selection of US group Stone Harbor Investment Partners and Swiss firm Pictet Asset Management is based on their respective experience in the area of local currency developing world debt.

By using a two-manager approach, Russell Investments hopes the two management styles on offer will complement each other and provide strong, risk-adjusted returns.

Commenting on the fund, Russell fund manager James Mitchell said: ‘Strong economic growth, improved and sustainable fundamentals, and variety of local debt markets available, makes investing in this asset class an attractive complement to other fixed income and equity exposures.’

The fund will be benchmarked against the JP Morgan GBI-EM Global Diversified Index.