Fund management: Ashmore launches high-yield EM fund
Jerome Booth, head of research at Ashmore Investment Management, has called on his competitors to follow his firm in launching a specialist emerging market corporate high-yield fund.
"It would help add liquidity, provide a stable investor base and help the perception of the asset class"
"This is a separate asset class and so we welcome other funds doing something similar," he says. "It would help add liquidity, provide a stable investor base and help the perception of the asset class."
Booth’s comments come on the back of the launch of Ashmore’s fund last month, which the asset manager claims is the first such vehicle of its type. At the same time, Credit Suisse announced the launch of an emerging market corporate bond index focused on dollar bonds from 366 issuers. The Ashmore fund will invest in a wide range of mostly debt instruments from corporate issuers. About a quarter of its committed deals are in Latin America, with Russia and CIS accounting for the biggest chunk at 40%, the Middle East and Africa 25%, and Asia 15%. Booth says that over time the Asian proportion will to rise to about 25%, with Russia’s share falling commensurately.
Corporate issuance from emerging markets has grown strongly in recent years.