The Emerging Markets Short Duration Fund is denominated in US dollars and other G7 currencies and seeks to maintain a weighted average portfolio duration of between one and three years.
It represents the first time the investment management company has offered access to its $6bn of short duration Emerging Markets debt through a dedicated SICAV structure.
Domiciled in Luxembourg, the UCITS IV-compliant SICAV has a minimum investment of $5000 and a minimum additional investment of $500.
It was launched on 24 June and is managed by Ashmore Invest via an investment committee.
It does not have a performance fee and is available in institutional and retail share classes.
Ashmore portfolio manager Alexis De Mones said: “The fund offers investors the potential for more stable income generation with lower volatility than traditional debt portfolios.
“It invests in securities with shorter maturities, creating natural income generation from coupons and maturing bonds paid out to investors via regular monthly dividend distributions.”
He added that it offers an attractive risk/reward profile, allowing investors to capture a “meaningful” yield while keeping average duration low.
Christoph Hofmann, Ashmore’s global head of distribution, added that the fund will allow investors to shorten interest rate duration while continuing to generate high current income.
Indonesia
In April, Ashmore entered into a partnership with Bank Permata, one of the largest banks in Indonesia, to distribute its Progressive Nusantara Fund in the country.
The equity focused fund was launched in February last year and adopts a mid-cap investment strategy, with assets worth Rp1.2trn as of 31 March, representing 60% of Ashmore’s total funds under management in Indonesia.
It has a mandate to invest at least 80% in equity securities and at least 50% of this is invested in equity securities issued by medium- and small-cap companies.
Investments can be made through regular purchases with a minimum investment of $10m and periodical purchases with a minimum investment of Rp250,000 each month debited from the customer's account.
