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EI Sturdza launches EMD fund

EI Sturdza launches EMD fund

Investment firm EI Sturdza Investment Funds has launched an emerging markets bond fund, the company has announced.

The EI Sturdza Strategic Quality Emerging Bond fund will be managed by Eric Vanraes, head of fixed income investments at Banque Eric Sturdza.

Vanraes joined the firm in 2008 and is already manager on the EI Sturdza Strategic Euro Bond and EI Sturdza Strategic Global Bond funds currently.

The newly-launched strategy will focus on global emerging markets with as low as possible portfolio turnover. It is a benchmark-agnostic fund, which primarily invests in hard currency bonds denominated in US dollars mainly in BBB+ to BB+ segment. Local currency debt won’t be taken into consideration.

EI Strudza decided to add new strategy based on the belief that sovereign and corporate emerging market bonds offer diversification compared to traditional fixed income investments.

The asset manager said another incentive for the launch was the low leverage of emerging markets issuers, the larger amount of cash they have in comparison to developed market peers, the lower level of default rates than in the high yield space and the greater opportunities to manage higher volatility and different dynamics affecting the market.

Commenting on the launch, Georges Gutmans, managing director at EI Sturdza Strategic Management, said: ‘Eric’s track record of success and the investment insights brought forward by him and his team will no doubt provide a winning formula as we enter into an interesting time for emerging market fixed income investment.'

The fund is registered in Switzerland, while eyeing near-term registration in Italy and the UK, with the aim of longer-term expansion across Europe.

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