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Nikko AM Launches Emerging Market Bond Fund

Amisha Mehta Deputy Editor 9 December 2016

Nikko AM Launches Emerging Market Bond Fund

The Japanese asset manager is offering European investors exposure to emerging market fixed income assets.

Nikko Asset Management has launched the Emerging Markets Local Currency Bond UCITS Fund.

The fund targets an excess return of 1.5 per cent against the JP Morgan GBI-EM Global Diversified Index, investing in a global emerging market portfolio of 30 to 50 bonds. It will be run by the firm's head portfolio manager, emerging markets, Raphael Marechal. He will be supported by the firm’s global fixed income team.

The team will adopt an active investment approach based on fundamental research, seeking to take advantage of mispricings in emerging markets.

“The low yield environment worldwide means investors have to be more active in their fixed income portfolio allocation. The growth gap in emerging markets is returning, on the back of sustained reform and consolidation over the past three years, and we believe the fund offers a promising entry,” Marechal said.

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