The fund will be the BNY Mellon Emerging Market Debt Opportunities Fund.
At a recent conference, Kozhemiakin alluded to the fact that analysts should be able to look across the emerging market (EM) spectrum at local sovereign debt as well as dollar-denominated sovereign and corporate debt.
The one segment missing, he said, is EM local currency corporate debt which does not currently exist when you strip out issuances below $500m.
He added that this makes the investable EM debt universe $25bn not a $1trn market as some commentators suggest.
Most of the limited opportunities sit in the offshore remninbi or dim sum bond market. The lack of real opportunities means liquidity in local currency EM bonds is highly constrained and he does not envisage investing in the asset class in the next two to three years.
Standish already runs the BNY Mellon EM Debt, EM Debt Local Currency and EM Local Currency Investment Grade Debt funds with approximately $4.2bn invested across the three mandates.
The EM Debt Local Currency Fund is the largest with $3.4bn of assets and has been running since 2006. The EMD Fund launched in 2005 and has $424m, while the EM Local Currency Investment Grade Debt Fund launched in June 2011 and has $292 of assets.
