The Swiss investment group announced the launch of its Emerging Market 2024 Fixed Maturity strategy this week backed by €80.3m of seed money.
It aims to invest in corporate, sovereign and quasi-sovereign bonds from emerging market issuers. It will diversify the portfolio by additionally investing in other kinds of debt instruments. As the name suggests, the fund will have a fixed maturity date in 2024.
Daniel Moreno, Mirabaud’s head of emerging markets fixed income and Puneet Singh, the company’s senior fixed income portfolio manager will lead the new strategy.
“A fixed maturity fund is particularly relevant in an environment where diminishing liquidity in the hard currency market is gradually becoming a significant challenge and a major driver for valuations,” Moreno explained.
“By investing in emerging market debt to maturity, investors can extract a high degree of visibility within a specified horizon whilst reducing market-to-market sensitivity, both of which translate into higher risk-adjusted returns.”
Moreno already manages Mirabaud’s global emerging market bond fund, which was launched in November 2017. In its first year, the fund returned 4.1%, according to data from FE Analytics, placing it in the second quartile of the Investment Association’s Global Emerging Markets Bond sector.
Moreno has been working in emerging market debt since 1997, having previously worked as head of emerging market debt at Rubrics Asset Management and as a senior portfolio manager at both Union Investment and Sydbank in Denmark.