Edinburgh-based boutique Baillie Gifford has launched a new Emerging Markets Bond fund.
Part of the Baillie Gifford Bond Funds ICVC, the new OEIC sub-fund will invest primarily in local emerging market bonds issued by sovereign, supranational, public sector or corporate issuers.
At least 75% will be held in bonds issued by emerging markets borrowers or bonds denominated in emerging markets currencies.
Managed by Gordon Brown and Sally Greig, the fund targets a total return in excess of the JPMorgan GBI-EM Global Diversified Index return (before charges and expenses). Initial target gross yield will be in excess of 7% per annum, with any income to be paid quarterly.
“It has become clear to us that many of our best ideas in recent years, in both currencies and bonds, have been in the emerging markets area,” Baillie Gifford ICD fixed income team director Laurence Linklater says.
“As it is a relatively new asset class there is scope for active managers to add value and make money.”
Retail minimum investment is £1,000, with 3.5% initial charge and 1.3% AMC. Until 25 July, Baillie Gifford offers a 0.5% discount on the usual initial charge.IFAonline
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