Record EM Sustainable Finance Fund
An innovative and impactful investment solution in the EM debt space
Latest NAV Price
109.412
18th December 2024
Fund Size
$1.04 bn
18th December 2024
Dealing Currency
USD
Dealing Frequency
Daily
Objective
The Fund aims to achieve capital gains over a medium to long term time horizon whilst operating as an impact strategy.
Investment Overview
The Fund seeks to achieve the investment objective through:
(i) exposure to a diversified portfolio of emerging market and frontier currencies; funded via basket of developed market currencies
(ii) investment in bonds issued by MDBs and DFIs
Alongside financial returns, the Fund seeks to have positive impact by mobilising private capital for development of Emerging Market and Developing Economies (“EMDEs”). It offers currency hedging solutions in partnership with the development finance community to encourage local currency funding, whilst simultaneously financing key development projects through its investments in bond instruments issued by Multilateral Development Banks (“MDBs”) and other Development Finance Institutions (“DFIs”) with active operations in EMDE countries.
For the purposes of the EU Sustainable Finance Disclosure Regulation the Fund has been categorised as an Article 8.
Reasons to invest:
Unique investment strategy
Fund combines aspects of impact investments, EM FX and private placements
Strong track record
Outperformance of Emerging Market Debt benchmarks and peers since launch
Diversified source of alpha within Emerging Market Debt
Whilst traditional EM debt strategies offer constrained exposures to the underlying universe, the Fund screens all investable currencies in the EM universe using proprietary quantitative and fundamental methods to ensure a diversified alpha stream
Renata Kreuzig
Director, Fixed Income
Canberk Yalcin, CFA
Director, EM Currency
Performance
Key Fund Facts
Funds Risks
Synthetic Risk and Reward Indicator (SRRI)
The risk indicator assumes you keep the product for five years. The actual risk can vary significantly if you cash in at an early stage and you may get back less than your initial investment/ You may not be able to sell the product easily or you may have to sell at a price that significantly impacts how much you get back.
We have classified this product as 3 out of 7, which is a medium-low risk class. This rates the potential losses from future performance at a medium-low level, and poor market conditions are unlikely to impact the capacity to pay you.
The main risk categories of investing in the Fund are as follows: Debt Securities Risk Investments in bonds are subject to interest rate, sector, security and credit risks. The value of such assets may be affected by uncertainties such as international political developments, changes in government policies, taxation, restrictions on foreign investment and currency repatriation, currency fluctuations and other developments in applicable laws. Please refer to the prospectus for further information on risks