Explaining the aim of the introduction of the new fund targeting emerging market, Baring said that the fund will ensure maximize total return, consistent income, capital appreciation and through the use of a currency overlay, by investing in emerging market corporate debt securities.
The firm will invest minimum 70% of the fund’s total assets in emerging market debt securities in various emerging markets, targeting both investment grade and non investment grade debt instruments.
The company has appointed Faisal Ali to administer the fund, who joined Barings in August 2011 and has more than eight years of fixed income investment experience across Asia and emerging markets.
Faisal Ali said, "We believe emerging market corporate debt has the potential to offer attractive risk-adjusted returns over the medium and long-term. The rise in issuance over the last two years, as many local corporates take advantage of the current climate of low yields and a relatively weak US dollar, has not gone unnoticed by foreign investors.
"As the economies of emerging markets continue to develop and mature, supported by favourable demographic and secular trends, high productivity rates and comparatively superior growth rates, we think the local corporate bond market should continue to expand to help finance and fund a growing consumer base."