Mellon Global Investments has added a local currency emerging markets debt offering to its Dublin-do...
Mellon Global Investments has added a local currency emerging markets debt offering to its Dublin-domiciled global fund range.
The Mellon Emerging Markets Debt Local Currency fund, run by the group's specialist fixed income arm Standish Mellon Asset Management, invests in bonds and other debt instruments issued by emerging market sovereigns and corporations.
Alan Mearns, head of global marketing and deputy chiefexecutive at Mellon Global Investments, said: "As dollar-denominated emerging market debt has become established as an asset class, so local currency debt has seen a parallel development.
"Attractive performance and low correlation to dollar-denominated debt have led to a growing demand for local currency denominated funds."
The group said the addition of the sub-fund had come at a time when responsible fiscal and monetary policies in emerging economies has helped control inflation, enabling these countries to extend borrowings along the yield curve.
The fund's manager John Peta said this sustained borrowing has resulted in improved credit quality, liquidity, transparency and volatility, which has enabled the asset class to produce attractive risk-adjusted returns over the last few years.
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