Source and Ashmore partner for EMD launches
By Chang Lin Zhu, 9 Oct 14
Source and Ashmore have partnered to launch two London Stock Exchange-listed actively managed ETFs giving exposure to emerging market debt.
As a new share class of the Ashmore SICAV, the Emerging Markets Total Return Fund allocates between emerging market corporate bonds, sovereign local currency and US dollar-denominated debt, aiming to take advantage of opportunities that arise throughout the market cycle.
The second vehicle, Emerging Markets Corporate Debt Fund, provides more focused exposure to the corporate bond sector, where the firms believe spreads are at more attractive levels compared to their developed market peers.
Both funds are invested physically in a diversified portfolio of bonds and are managed actively.
“Investors wanting to diversify and pick up additional yield are looking beyond developed markets,” said Source’s chief development officer Michael John Lytle.
“Ashmore is one of the very few managers solely dedicated to emerging markets and with a very long and successful track record. Investors will now be able to access their expertise in active management while benefiting from the intra-day trading, liquidity and increased transparency of Source’s ETF structure.”
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