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
Play Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter