Skandia launches local currency EM debt fund

Skandia Investment Group (SIG) has launched a local currency emerging market debt fund in order to benefit from the long-term prospects for the asset class.

The group has handed the new Skandia Local Currency Emerging Market Debt fund mandate to US-based fixed income manager Stone Harbor Investment Partners. Stone Harbor already runs a mandate within the Skandia Emerging Market Debt fund, which began life at $60m (£38m) in size and has since grown to almost $500m. SIG says the rationale for the fund is based on several factors, including the belief EMD is a good way to capture global growth, and that yields in emerging markets look attractive on a relative basis. Local currencies are still undervalued, while local currency EMD is an es...