ETPs provider Source has teamed up with Ashmore to launch the first funds in Europe that offer an actively managed ETF structure.
The Ashmore Source Ucits ETFs are new share classes of the Ashmore Sicav.
The Ashmore Sicav Emerging Markets Total Return Fund provides an active approach to allocating between Emerging Market corporate bonds, sovereign local currency and US dollar denominated debt, aiming to take advantage of opportunities that arise throughout the market cycle.
The Ashmore Sicav Emerging Markets Corporate Debt Fund provides more focused exposure to the corporate bond sector, where spreads over the developed market corporates are at attractive levels. Both funds are invested physically in a diversified portfolio of bonds and are managed actively.
The funds are listed on the London Stock Exchange and are available in USD.
“Source focuses on identifying investors’ needs and then searching for ‘best in class’ solutions to meet those needs,” explains Michael John Lytle, Chief Development Officer at Source.
“Investors wanting to diversify and pick up additional yield are looking beyond developed markets. Ashmore is one of the very few managers solely dedicated to Emerging Markets and with a very long and successful track record. Investors will now be able to access their expertise in active management while benefiting from the intra-day trading, liquidity and increased transparency of Source’s ETF structure.”
“Despite their huge potential, strong growth prospects and favourable fundamentals, Emerging Markets remain significantly under-represented in most investors’ global asset allocation. As an active manager with over 20 years’ experience in Emerging Markets, a key objective is to make the wealth of Emerging Market opportunities more readily available,” says Christoph Hofmann, global head of Distribution at Ashmore.