Despite previous reticence to invest in local currency emerging market debt, advisers are growing more comfortable with the idea, writes Joanna Faith.
News of the Investec Emerging Markets Debt fund breaking through £1bn of assets has thrust the asset class into the spotlight. The fund, which is the first daily-dealing UK onshore vehicle investing in local currency emerging market debt (EMD), has grown from £91m at the start of 2009 to more than £1.15bn now. It was just worth £428m at the beginning of 2010. While advisers are familiar with investing in emerging market equity funds, few are comfortable with EMD. However, this is set to change, according to Investec Am UK distribution managing director David Aird. He says while most of t...
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