Following increased interest in emerging markets debt investments from investors, Investec Asset Management has seen significant new flows and client relationships of approximately €1bn into its Global Emerging Markets Debt Strategy in the last 12 months to end May 2010.
A number of investors across Europe have allocated to this strategy, including Aktia Invest, part of the Finnish financial services group Aktia, Pohjola Asset Management and Danske Capital Finland/Sampo Bank. The Firm has also seen substantial commitments to the strategy from Chilean institutional investors. Investec Asset Management manages approximately €8.5 billion in emerging markets debt strategies (as at end March 2010) across both global and single country strategies.
With over 20 years of experience in emerging markets debt investing, Investec Asset Management has built a specialist investment capability in locally denominated emerging markets debt. The Strategy aims to generate long-term total returns by investing primarily in local currency emerging markets debt and currencies, covering a universe of around 60 countries. It is designed for investors who are looking for professionally managed exposure to a relatively hard-to-access investment area that offers the potential for both attractive yields, capital growth and diversification benefits.
Richard Garland, Managing Director, Cross-border Distribution, commented, “This asset class is attracting attention not only because of the strong fiscal position of many emerging market economies, but also due to the potential it offers both for good risk adjusted returns and portfolio diversification for our clients.
“Given the depth of our experience in investing in local emerging markets, we continue to believe there is an exciting investment opportunity that can be captured by active management of this asset class.”
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