Mirabaud Asset Management has launched a fixed maturity emerging markets debt fund. The Emerging Market 2024 Fixed Maturity strategy has been launched with $90 million of assets under management. It aims to capture the attractive yields currently offered by EM issuers with a profile close to a single bond and the diversification offered by a portfolio of debt instruments.
Such a strategy provides exposure to hard currency EM fixed income with a 2024 finite horizon, explained Daniel Moreno, head of EM fixed income. It takes a buy and hold approach across corporate, sovereign and quasi-sovereign debt, accessing some of the best opportunities with the highest risk/reward across emerging markets globally, he added.
This new vehicle is managed by Moreno and Puneet Singh, senior fixed income portfolio manager. Both have extensive experience in EM fixed income and currently run the Global Emerging Market Bond Strategy, implementing dynamic decisions across sub-asset classes and currencies, at different times in the economic cycle.
Moreno noted that a fixed maturity fund is particularly relevant in an environment where diminishing liquidity in the hard currency market is gradually becoming a significant challenge and a major driver for valuations. “By investing in EM debt to maturity, investors can extract a high degree of visibility within a specified horizon whilst reducing market-to-market sensitivity.”