BNY Mellon Investment Management has launched an emerging market (EM) debt fund to tap into a ‘dramatic transformation’ in the asset class.
Colm McDonagh, head of emerging market fixed income at Insight Investment, will manage the BNY Mellon Emerging Market Debt Total Return fund, supported by Insight’s specialist EM debt team.
‘Emerging market debt has undergone a dramatic transformation over the past two decades and today accounts for approximately 25% of global fixed income with opportunities in more than 70 countries,’ said McDonagh (pictured).
He added that he sees investors increasingly moving away from single-sector EM debt to strategies where the investment manager has the freedom to allocate across the whole market at their own discretion.
Fergus McCarthy, head of UK and Ireland intermediary distribution at BNY Mellon Investment Management, noted: ‘Insight’s EM debt team has first-hand experience of seismic events across market cycles, including the 1997 Asian financial crisis, the 1998 Russian debt default and the 2008 global financial crisis.
'We believe that this pedigree provides a significant advantage in managing the fund’s unconstrained portfolio.'
The annual management charge for the fund will be 0.55%.