British investment manager Ashmore Group has unveiled a new short duration emerging market debt fund for investors concerned with rising interest rates.
Dubbed as Ashmore Emerging Markets Short Duration fund, the Luxembourg-domiciled fund will invest in short-term emerging market debt securities and other instruments issued by sovereigns, quasi-sovereigns and corporate.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The fund will be denominated exclusively in dollars and other G7 currencies and seeks to maintain weighted average portfolio duration of between one and three years.
Managed by Ashmore Invest via an investment committee, the Ucits IV-compliant Sicav fund has a minimum investment of $5000 and a minimum additional investment of $500.
The fund will be available through institutional and retail share classes across a variety of currencies and does not have a performance fee.
Alexis De Mones portfolio manager Ashmore said: "The fund offers investors the potential for more stable income generation with lower volatility than traditional debt portfolios. It invests in securities with shorter maturities, creating natural income generation from coupons and maturing bonds paid out to investors via regular monthly dividend distributions."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"It offers an attractive risk/reward profile, allowing investors to still capture a meaningful yield while keeping average duration low and can offer a higher average credit quality than equivalent short-dated US or European portfolios," Mones added.
Christoph Hofmann, Ashmore’s global head of distribution, added that the fund will enable investors to reduce interest rate duration while continuing to generate high current income.
