BNY Mellon Asset Management is launching its £2.4bn emerging markets debt local currency fund and £245m Brazil equity fund into the UK retail market in February.
The Dublin-based funds are being added to a number of platforms, with February 8 targeted as the launch date.
The four-year old BNY Mellon emerging markets debt local currency is managed by Alexander Kozhemiakin of Standish Mellon Asset Management, BNY’s Boston-based bond and absolute return specialist boutique.
The fund, available in dollar and euro-denominated share classes, will buy bonds in emerging markets denominated in local currencies where most emerging bond funds only buy dollar-denominated securities. It has a 1 per cent annual charge.
The three-year-old BNY Mellon Brazil equity fund is managed by Rogerio Pope of BNY Mellon ARX and also has a 1 per cent annual charge.
Standish fixed-income portfolio specialist Simon Surtees says: “The US, the biggest economy in the world, is set to be exceeded by China potentially as early as this decade.”
Hargreaves Lansdown senior analyst Meera Patel says: “There has been a recent sell-off in emerging market debt but this should only serve to create opportunities.
“On a long-term view, I am positive, but investing in this is not without risk and policy-tightening from countries such as China could have an adverse impact on emerging market debt.”