Russell Investments picks Pictet and Stone Harbor to run EMD fund

Russell Investments has launched the Emerging Market Debt Local Currency fund under two managers, Stone Harbor Investment Partners and Pictet Asset Management.

The Dublin-domiciled fund provides access to local currency emerging market debt, which the firm believes offers attractive yields versus developed markets, as well as the potential for currency appreciation.

Russell said the duo has complementary styles to deliver strong risk-adjusted returns.

Russell portfolio manager James Mitchell said: ‘There has been a great deal of change in the world of emerging markets investment and there is strong investor interest in the local bond markets.

‘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 is benchmarked against the JP Morgan GBI-EM Global Diversified Index, and has an annual management charge of 1%.