fund

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Ashmore SICAV Emerging Markets Local Currency Bond Z2 GBP

Provides exposure to emerging market local currency sovereign bonds.

  • 7336.00p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 9078.00p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.97%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 4.90%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 30 November 2021, fund commentary last updated 08 December 2021

The fund aims to achieve total return through a combination of income and capital growth by investing in a portfolio of mainly local currency denominated emerging markets bonds. Local currency debt consists of sovereign, quasi-sovereign and occasionally regional government bonds issued in the domestic currency of the issuer. The Ashmore team believes that funding in local markets as opposed to external markets has increasingly become the main source of funding for governments. Local currency credit ratings also tend to be higher than foreign currency debt ratings as governments are generally seen as being able to print sufficient local currency to meet obligations. The fund is actively managed and references the JP Morgan Government Bond Index Emerging Market Global Diversified as a benchmark. Although the management team considers the benchmark when building its portfolio, it can hold bonds which are not part of the index.

Fund summary

Sector
Structure OFFSHORE FUND
Launched August, 2017
Size £2,033m
Yield 4.90%
Charging basis Income
Dividends paid 14th of each month

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.97%

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Investment process

The investment philosophy is based around five main pillars which help shape the decisions made by the fund’s investment committee. It begins with an analysis of global and local economies taking in areas such as politics, interest rates, currencies and factors driving market prices. The team then analyse the credit risk of securities such as the issuer’s ability and willingness to service their debt. The next key focus is value, looking for gaps between market prices and credit risk. The fourth pillar is active management where the team focusses on taking advantage of structural changes in emerging market instruments such as bonds, whilst analysing the investment life cycle, execution, management, and exit. The fifth pillar is centred on liquidity which is integral to all investment decisions and portfolio construction. The heart of the process is the weekly meeting of the investment committee and portfolio managers, which begins with a global economic overview. This is used to determine market exposure levels and make allocation decisions such as whether to pursue rates or foreign exchange, the attractiveness of local versus external currency, and corporate relative to sovereign issues. The next item on the agenda is country analysis, looking at the likely local effects of external economic factors. Portfolio manager’s research findings sourced from country visits, Ashmore’s network of market contacts and their local offices are reviewed. The investment committee then breaks into subcommittees which discuss the top trade recommendations relevant to their strategies, changes in credit, foreign exchange, and duration target exposures, and decide on asset allocation and instrument selection.

Ashmore is a London-based investment manager, specialising in emerging markets. The fund is managed by a highly experienced team consisting of committee members and portfolio managers. They are supported by 20 global offices across Asia, South America and the Middle East and have contacts in major institutions and Governments providing market and policy making insight. The management team accept that emerging market debt can be an extremely inefficient market with plenty of price volatility. But it aims to take advantage of these opportunities by identifying the point in a market cycle when value is at its highest. This is an option for investors looking for emerging markets fixed income exposure.

Manager research

Average monthly relative returns

  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 0.00%
  • 21/22 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
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Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Ashmore Investment Management Ltd

Ashmore has been managing Local Currency Debt since 1996. Based in London, the business was founded in 1992 as part of the Australia and New Zealand Banking Group. In 1999, Ashmore became independent and today manages $91.3billion in pooled funds, segregated accounts, and structured products. Its portfolio management and research team have developed an investment approach based on two decades of Emerging Markets experience.

Track record

The track record of Ashmore Investment Management Ltd in managing mutual funds in this sector is still too short for us to draw any meaningful conclusions and so our assessment is based largely on qualitative aspects.

Periods of worst performance

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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 Information - Income

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Key Investor Information - Accumulation

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