UK-based asset manager Fidelity Worldwide Investment is expanding its fixed income range with the launch of an emerging market corporate debt fund.

The new fund, managed by Andrei Gorodilov, will invest in 150-200 bonds issued by corporations domiciled in countries such as Russia, Mexico, Turkey, Brazil, South Korea, Indonesia and China.

The firm argues that more of the emerging market population are becoming global middle class consumers, a trend set to further drive rapid growth.

At present, the thinking goes, many emerging market corporate bonds are tied to the financial and commodities sectors. As the asset class evolves and expands over the longer term, investors can gain exposure to growing domestic demand by investing in emerging market corporate bonds.

“The market size of the US dollar-denominated portion of the emerging market corporate debt market now rivals other well-established fixed income asset types,” Gorodilov said in a statement.

“The current emerging market corporate universe presents a well-balanced investment grade and high yield opportunity set, with a broadly diversified regional and country universe. Even with the large returns seen historically, we still expect the asset class to appeal to investors, mainly thanks to income generation, although selected capital appreciation opportunities may still present themselves.”

The new fund is a Luxembourg-domiciled SICAV. The comparative benchmark is the JP Morgan Corporate Emerging Market Bond Broad Diversified Index.

Minimum investment is $2,500, or $50 per month, for the A share class (annual management charge 1.2 per cent) and $1 million for the Y share class (AMC 0.6 per cent).