ANZ starts emerging markets fund

ANZ starts emerging markets fund

LONDON (Reuter): ANZ Investment Bank said on Monday it had launched a new emerging market's local currency debt fund.

It said the open-ended fund, ANZ Local Currency Debt Portfolio, was targeted at institutions and sophisticated investors globally and would invest in a cross-section of countries, including Mexico, South Africa, Indonesia and Bulgaria.

"Emerging markets debt is an increasingly important asset class, offering investors the combination of returns frequently in excess of those available in the developed market together with a high degree of portfolio diversification," it said.

It said local currency debt had provided some of the most attractive returns in emerging markets debt.

In Russia in 1996, treasury bills produced triple digit yields and Ukraine yielded over 75 percent while both had relatively stable currencies, it said.

The fund is being launched by ANZ's Emerging Markets Fund Management, which currently has $500 million under management. The minimum investment is $25,000 with an annual fee of 1.5 percent of NAV payable quarterly.

It said an indicative portfolio may also include Brazil, Colombia, Ecuador, Egypt, India, Jamaica, Kazakhstan, Kenya, Lebanon, Lithuania, Nigeria, Russia, Turkey, Ukraine, Venezuela and Zimbabwe.