emerging market debt fund will be first in group's single manager series
International asset management group Forsyth Partners is to offer its first single manager funds with the launch of the Ucits III Dublin-listed Forsyth Tailored Selection Series.
The first fund in the series, the Forsyth Lodsworth Global Emerging Market Debt fund is being launched in conjunction with Hydra Capital Management, a privately owned company that specialises in global emerging market fixed income.
It will be run by Colm McDonagh, who joined Hydra Capital in January 2006 after previously being head of global emerging market debt at Aberdeen Asset Management.
The fund invests directly in debt, interest rate and currency instruments of emerging market products.
Dennis Clegg, marketing director at Forsyth Partners, said it had been running its own portfolio of fund of funds since 2000, and the move into single manager funds was a natural progression.
He said Forsyth had noticed more demand for specialist vehicles, which were not suited to fund of funds.
Clegg said: "We anticipate there will be a number of single manager offerings coming out of Forsyth in the next year or two."
The emerging market debt fund, with an absolute return objective, will typically contain local and external currency government and corporate instruments, with a maximum 20% single currency exposure.
It will hold between 15 and 20 investment positions, which are diversified globally across each economic and political region.
Clegg said it had chosen to launch the emerging market debt fund first because it was a new asset class for Forsyth and Hydra Capital Management fitted well with its offering.
He added: "The product itself is attractive, it adds to our range of products in the market and the emerging market asset class itself has a lot of appeal."
McDonagh said investment returns in emerging market debt had been consistently strong over the last 15 years due to the structural nature of credit improvement among many developing countries. He said: "The next stage of this credit improvement will be reflected in capturing the premium offered by the development of local currency government and corporate bond markets in various emerging countries."
The fund, which will run under the Forsyth Funds umbrella alongside its Managed Selection Series, offers dollar and euro share classes. The retail share class has a minimum investment level of $10,000 and an annual management fee of 1.25%. In addition, there is a 15% performance fee of any gain over the six month Libor.key pointsForsyth Partners offers single manager funds
Initial fund in series invests in emerging market debt
Fund will contain local and external currency instruments
Dollar and euro share classes
More single market funds expected to follow
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