GAM, the Dublin-based private client investment manager, has launched another UCITS III fund, which invests in emerging market debt and currency and is managed by Pharo Global Advisors. 

The GAM Star Pharo Emerging Market Debt & FX fund invests the majority of its assets in emerging market government and quasi-government cash bonds, as well as currency futures and forwards, the firm said in a statement. The fund is targeting annual returns of 5-10 per cent above the JP Morgan EMBI Global Diversified Composite Index.

According to Guillaume Fonkenell, chief investment officer at Pharo, countries with emerging economies “are coming out of the crisis in much better shape” than countries which are members of the Organisation for Economic Co-operation and Development.

“They [emerging economies] should continue to experience explosive GDP growth in the coming years. As a result, we expect the asset class to continue to outperform,” said Mr Fonkenell.

In other recent developments, in mid-November this year GAM launched an onshore version of its offshore fund, GAM Star Global Rates.