Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Standard Life Investments plans double EMD fund launch

Standard Life Investments plans double EMD fund launch
Standard Life Investments is planning a local currency emerging market debt (EMD) fund and an inflation-linked EMD product for Richard House and his team.

The local currency fund will be targeted at institutional investors and would be a higher volatility mandate than the firm's hard currency products. House said: ‘[Emerging currencies] is an asset class we are big believers on and we will be launching that type of product in the New Year.

‘But it’s a very volatile part of the asset class. Obviously you have quite sizeable movements of emerging market FX against hard currencies.’

He added: ‘We do think that over time emerging market currencies will appreciate against a basket of developed market currencies  – the euro, the dollar and the pound. But it’s a more volatile asset class and people do underestimate the volatility that is inherent when you buy local currency products.’

Both the funds, which are in the early planning stages, would complement the firm’s first EMD fund launched in October.

The Standard Life Emerging Market Debt fund, available to both retail and institutional investors, aims to deliver income plus some capital growth. It does not target a specific yield, although it offered a yield of around 4.7% at launch. House and his team hold sovereign debt denominated in dollars in the fund, and it is benchmarked against the JP Morgan EMBI Global Diversified index.

SLI said the asset class also has a diversified investment universe of over 50 countries and now constitutes around 12% of the global bond market.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
1 Comment Play CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

Do not miss the first two minutes of this film as Richard Buxton shares how he has been challenged by a client for owning shares in a certain company.

Play CEO Tapes: the huge opportunities for asset managers

CEO Tapes: the huge opportunities for asset managers

From tech disruption, retirement and poaching, the CEO discuss the opportunities for their businesses in this episode.

Play CEO Tapes: 'we're just a bunch of white dudes sitting here'

CEO Tapes: 'we're just a bunch of white dudes sitting here'

In our brand new series, eight CEOs discuss how the industry could do a better job for female fund managers.

Read More
Wealth Manager on Twitter