ASHMORE SICAV EM LOCAL CURRENCY BOND Z2 GBP UNHEDGED

Provides exposure to emerging market local currency sovereign bonds.

  • 9739.00p Price (Inc)
  • 10561.00p Price (Acc)
  • 0.00%

    Initial charge
  • 0.75% Annual management charge
  • 0.92% Ongoing charges
  • 0.00% Yield

Fund data last updated 18 October 2019

The fund’s objective is to produce returns of 1.5% to 2.5% in excess of its benchmark (the JP Morgan GBI-EM Global Diversified index) over a 3 year period. It aims to achieve this by investing in bonds issued by Emerging Market countries denominated in local currencies. Returns are generated through a blend of both capital appreciation and income.

Fund summary

Sector Global Emerging Markets Bond
Structure OFFSHORE FUND
Launched April, 2018
Size £4,555m
Yield 0.00%
Charging basis
Dividends paid

Charges

Initial charge -
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.92%

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Investment process

Ashmore has team-based approach to fund management with the Investment Committee having ultimate responsibility for the portfolio. The committee is comprised of Mark Coombs (CEO), Ricardo Xavier (Head of Local Currency), Jan Dehn (Head of Research), Herbert Saller (Head of External Debt), Robin Forest (Head of Corporate Debt), and Fernando Assad (Head of Multi-Asset). Their investment process centres on the committee's weekly investment meeting. These start with a global macro overview, which enables a view of the world to be formed. Followed by country analysis looking at the effects of external macro factors to determine their specific country views. Finally base on their country and global view trade ideas are discussed, agreed and then implemented. The fund invests not only in the debt securities of EM governments but also their currencies.

Ashmore in addition to managing their clients capital sees itself as having a role in facilitating the development of Emerging Market countries, through its involvement and promotion of EMD markets, and its foundation that contributes sustainably to disadvantaged communities. This offering provides access to local currency EMD, benefiting from their wealth of experience dating back to 1992 (when their first EMD fund was launched), their global network of contacts, and impressive track record of outperformance. The fund although benchmark aware, is not constrained by it; and regularly looks for opportunities outside this universe to achieve excess returns. The managers’ investment philosophy centres on the premise that EMD can be an extremely inefficient market, often exhibiting price volatility far in excess of what is proportionate for a change in the underlying issuer’s creditworthiness. The fund aims to harvest these opportunities by identifying the point in a market cycle when value is at its highest. The trades it employs to do this can be broadly categorised into active duration trades (riding the yield curve), active currency positions, and carry trades.

Manager research

Average monthly relative returns

Bestinvest MRI

14/15 15/16 16/17 17/18 18/19 3 years 5 years Career 3 years 5 years Career
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Track record

Periods of worst performance

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Relative 0.00% ()

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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Key Investor Documents

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