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.