Investec Asset Management has announced two new Luxembourg-domiciled emerging market currency funds.
The GSF Emerging Markets Local Currency Dynamic Debt fund will focus on opportunities in 23 of the most liquid local currency markets, while the GSF Emerging Markets Currency Fund will target long-term emerging market currency appreciation.
The former fund will be managed by head of emerging market debt Peter Erdmans with the support of the EM debt team and will use both long and short positions to generate returns. Investec believes that, by providing access to local emerging markets debt, the fund will supply potential returns from both bonds and currency convergence.
Erdmans also has a hand in the GSF Emerging Markets Currency fund, which he will co-manage with Werner Gey van Pittius. This fund will invest in a universe of 36 emerging market currencies, with returns anticipated to be mainly independent of bond market and equity fluctuations. Investec states that the fund should profit from expected outperformance of emerging market currencies relative to those of developed markets, potentially limiting interest rate risk.
Both funds demand a minimum investment of £1000 and a 4.5 percent initial charge, with the annual management fee being 1.5 percent.
