Emerging Markets  

Muzinich launches longer duration EMD fund

Muzinich launches longer duration EMD fund

Bond house Muzinich has launched a new emerging market debt (EMD) strategy managed by Warren Hyland as it adds to its offerings in the region.

The new Dublin-domiciled Muzinch EMD fund will complement the firm's existing $674m (£522m) short-duration strategy launched in 2013, but will offer "a more regular duration" after demand from clients.

It will use the Bank of America Merrill Lynch Emerging Markets Corporate Liquid Index as a benchmark, only invest in hard currencies, and target 1.5 percentage point outperformance over a market cycle.

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Mr Hyland said this would mean a 5-6 per cent return in the next year should the team's investment outlook fall in line with reality.

He said: "We are seeing more opportunity for capital gains from regular duration emerging market debt, as opposed to short duration, which is more focused on capital preservation and about clipping emerging markets’ superior coupons.”

Charges for the new fund were not disclosed.