Northern Trust has launched the Northern Multi-Manager Emerging Markets Debt Opportunity Fund (NMEDX) offering investors exposure to the full spectrum of emerging markets debt.
“The emerging markets debt asset class has evolved over the past few decades, driven by improving fundamentals, structural changes and increased investor interest,” says Chris Vella, chief investment officer for multi-manager solutions at Northern Trust. “Our fund intends to capture diverse sources of return from emerging markets debt, including local and external currencies, and sovereign, quasi-sovereign and corporate issuers. This style provides investment managers with the broadest opportunity set to invest in and allows for expanded alpha1 potential in their sector and security allocation decisions.”
Launched on 3 December 2013, the fund invests at least 80 per cent of net assets in fixed income securities that provide exposure to a blend of local and hard currency emerging or frontier market issuers. The fund can also opportunistically invest in emerging market corporate bonds.
The fund's total net operating expense ratio is 0.93 per cent and the minimum investment is USD100,000. The fund takes a multi-manager approach, with assets allocated to multiple outside sub-advisers using distinctive investment styles. Northern Trust will conduct manager research, selection, optimisation and oversight.
Current investment sub-advisers to the fund are BlueBay Asset Management and Lazard Asset Management.
