Eaton Vance launches emerging markets local income fund
Eaton Vance Management (International), a subsidiary of Eaton Vance Management, today announced the launch of the Eaton Vance International (Ireland) Emerging Markets Local Income Fund.
The Fund is an Irish-registered UCITS fund, subject to regulation by the Central Bank of Ireland.
The Fund’s portfolio managers are Michael Cirami, CFA, co-director of global income, Eric Stein, CFA, co-director of global income, John Baur, CFA, director of global portfolio analysis and Danat Abdrakhmanov, portfolio manager.
The fund seeks to generate total return by investing in fixed income securities denominated in currencies of emerging market (EM) countries and/or issued by emerging market sovereigns or companies. It may also invest in derivative instruments based on currencies, interest rates or issuers of EM countries.
The fund will use this wide range of fixed income and derivative instruments to exploit opportunities in some of the world’s fastest-growing economies and to express a view on country-level currency, interest rates and credit spreads. While it is benchmark aware, it will have significant non-benchmark exposure for an expanded opportunity set, greater diversification and duration and currency flexibility.
According to Cirami, “Contrary to the great majority of emerging markets local currency strategies largely confined to a limited number of emerging markets countries, our Fund’s unique approach seeks to capitalise on the full potential of the emerging markets sector. The breadth of its investment universe – consisting of more than 80 countries (compared to the benchmark’s 18 countries) – combined with Eaton Vance’s research and the capabilities of our Global Income team, we believe will appeal to investors wishing to get further exposure to emerging markets.”
“We are excited to offer our international clients our emerging markets local debt investment capabilities intended to provide attractive potential returns in a backdrop of low yields and low spreads across many other sectors in the fixed income markets globally.” said Stein.
The Eaton Vance Emerging Markets Local Income strategy has been available to investors in the US for over 10 years. The Global Income Group is made up of 45 investment professionals managing over $10bn in emerging market debt instruments as of the end of 2017.