The fund will be managed by Richard House, a manager with a 15-year of experience in local emerging market debt. The fund is designed to capture the substantial yields available in local emerging markets and the relative undervaluation of the currencies. In managing the fund, Mr House will be supported by Threadneedle’s emerging market debt team. He will also draw on the expertise of the rest of Threadneedle’s 30-strong fixed income desk as well as the company’s emerging market equity managers.
Richard House said: Recent years have seen big improvements in the social, political and economic fundamentals underpinning emerging markets. This trend has increasingly allowed emerging market governments to issue bonds in their own currencies leading to the development of domestic yield curves. At the same time, macroeconomic reform has resulted in the creation of a pension fund industry in many countries. This, together with the ongoing search for yield on the part of international investors, has broadened the demand for local currency debt. We believe that this trend will continue.
