The Emerging Market Debt Unconstrained Fund will be co-managed by head of emerging markets fixed income Richard House and investment director for EMD Kieran Curtis.
It comes after the release of the emerging market hard currency and local currency debt funds, and will be part of the umbrella Emerging Market Corporate Bond SICAV.
The product will invest in more than 70 countries, covering hard and local currency sovereign debt and emerging market corporates.
The company said its approach will be highly selective with the aim of maximising risk-adjusted returns and building a diversified portfolio.
On the fund, House said: “The EM debt opportunity set has grown significantly and now includes over 70 countries across three distinct subsets: hard and local currency sovereign debt plus hard currency corporate bonds.
“While the fundamental backdrop is sound for most EM countries, it is important to recognise that this is not universally the case.
“The lack of an index constraint is also designed to help avoid exposure to or to take short positions in countries which may be experiencing macroeconomic challenges and where asset price performance is expected to be poor.”
