La Française to merge away pair of EM debt funds

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La Française to merge away pair of EM debt funds

Paris-headquartered asset manager La Française AM is set to merge two of its emerging market debt strategies on 7 December 2017, according to a shareholder letter seen by InvestmentEurope.

Assets of the La Française Obligations Emergentes fund will be poured into the firm’s other EM debt strategy called La Française Absolute Emerging Debt. The merger was decided last July by La Française AM’s management board and received French regulator AMF’s green light on 13 October 2017.

Following the merger, the La Française Obligations Emergentes’ vehicle and its Luxembourg-domiciled master fund will no longer exist.

Both strategies are managed by the company’s head of Emerging Markets Georges Farre. La Française Obligations Emergentes is a feeder fund of Obligations Emergentes, a sub-fund of Luxembourg-domiciled Sicav La Française Lux, and seeks to outperform the JP Morgan Emerging Markets Bond Index Global Diversified $ coupons included index over a three-year period. Its assets under management totalled €27.81m as at end of September 2017.

As for the second fund, La Française Absolute Emerging Debt, it was bringing some €7.28m of assets – as of 29 September 2017 – to its master fund, La Française Lux – Absolute Emerging Debt, which size was €121.46m at the same date. The fund seeks to generate an absolute net performance over a 12-month period.