Nikko Asset Management has launched the Emerging Markets Local Currency Bond UCITS Fund, which is managed by head portfolio manager – emerging markets, Raphael Marechal.
In a historically low yield environment, the fund aims to provides an income solution by leveraging the expertise of the firm’s emerging market investment teams.
“The low yield environment worldwide means investors have to be more active in their fixed income portfolio allocation. The growth gap in emerging markets is returning, on the back of sustained reform and consolidation over the past three years, and we believe the Fund offers a promising entry,” says Marechal.
It targets an excess return of 1.5 per cent against the JP Morgan GBI-EM Global Diversified Index, investing in a global emerging market portfolio of 30-50 bonds. The team adopts an active investment approach based on thorough fundamental research, taking advantage of mis-pricings in emerging markets.
“The fund meets demand for an institutional quality product providing sophisticated global investors access to emerging markets. It is an aspect of Nikko Asset Management’s continuing strategic commitment to grow its UCITS capability over the past two years,” says Nikko Asset Management head of global fixed income Andre Severino.
Marechal brings nearly 20 years’ experience managing emerging market debt, and was previously a senior member of the emerging markets team at BlackRock in London. He is supported by Nikko Asset Management’s global fixed Income team, which has grown substantially to add depth and expertise over the past two years. Nikko Asset Management has more than 206 investment professionals operating in 11 countries.
Nikko Asset Management has been adding UCITS funds to meet global investors’ evolving demand for exposure to diverse products and strategies. This latest launch follows the recent Global Credit UCITS in August 2016 and the Japan Focus Equity UCITS in May 2016.