L&G launches emerging market sovereign debt funds

Legal & General Investment Management has launched a range of passive emerging market debt funds responding to client demand.

Greater long-term growth dynamics, higher yields and attractive demographics have contributed to an increased interest in emerging market debt in recent years.  As developed nations and their corporations attempt to increase trade and relationship opportunities with emerging markets, this elevation in importance looks set to continue.  
 
Given this backdrop Legal & General Investment Management has launched:
 
•    Emerging Market Passive Local Currency Government Bond Fund – the reference index is the JP Morgan GBI-EM Global Diversified Index.
•    Emerging Market Passive USD Government Bond Fund (Hard Currency) – the reference index is the JP Morgan EMBI Global Diversified Index
•    Emerging Market Passive USD Government Bond Fund (Hard Currency) – GBP Hedged – the reference index is the JP Morgan EMBI Global Diversified Index, and hedged into sterling.
 
The funds are available to institutional pensions investors who want exposure to emerging market debt which, when combined with an existing investment portfolio, can bring potential diversification benefits.

Nick Hodges, business development manager at LGIM said: “These funds have been launched following demand from our clients and trustees who have indicated a significant appetite for passive emerging market debt exposure.

“Having researched our options, we have decided that the JP Morgan Indices, which are transparent and rules-based and already widely used, best meet our clients’ needs. I am very confident that these funds will prove extremely popular with both clients and trustees.”