Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a730847

First State readies local currency EMD fund

by Robert St George on Jan 30, 2014 at 10:58

First State readies local currency EMD fund

First State is preparing to launch a local currency emerging markets bond fund, Wealth Manager understands.

The group has been mulling such a fund since at least 2011, when First State’s Citywire A-rated head of emerging markets debt Helene Williamson (pictured) told Citywire that the firm would launch a local currency fund in ‘a different market environment’. Since then emerging market currencies have plunged: an equally weighted average of the rupee, real, rand and Turkish lira has dropped by 25% against the dollar during that time.

Early last year her colleague Philip Fielding also revealed that First State was progressing with the fund’s development, explaining that the intent was to take advantage of the greater issuance of bonds in local currencies by emerging market states.

Wealth Manager can now confirm that First State has registered the fund with the Financial Conduct Authority, one of the final steps in the process.

Williamson’s hard currency Emerging Markets Bond fund, which is only £43 million in size, has returned 11.6% since inception in October 2011, compared with an average of 3.5% from its IMA sector.

First State has also bolstered Williamson’s team this month by hiring Lamine Bougueroua as a portfolio manager, who will focus specifically on emerging market local currency assets. Bougueroua joined First State from Stone Milliner Asset Management, where he was a global emerging markets strategist. Prior to that, he worked in the same space at both Deutsche Bank and UBS.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the funds

Look up the fund managers

  • Helene Williamson
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

On the road

Click here to find out more from the Audience Development team.

Read more...

How is regulation feeding the outsourcing trend?

on Jul 24, 2014 at 10:59

Sorry, this link is not
quite ready yet