Download THREADNEEDLE LAUNCHES NEW EMERGING MARKET CORPORATE BONDS STRATEGY

THREADNEEDLE LAUNCHES NEW EMERGING MARKET CORPORATE BONDS
STRATEGY
Threadneedle, who has a total AUM of £8bn* in emerging markets, has launched a new
investment strategy via the Threadneedle (Lux) Emerging Market Corporate Bonds Fund**.
The fund aims to achieve a total return from income and capital appreciation from/by investing
principally in debt issued by emerging market companies as well as companies that conduct a
significant part of their business in emerging markets. Threadneedle, known for its expertise in
managing emerging market sovereign debt, aims to combine this skill set with the expertise of
its high yield and investment grade credit teams to exploit opportunities in the emerging market
corporate sector.
Richard House, Head of Emerging Market Debt at Threadneedle, comments:
“Emerging market fundamentals, particularly sovereign balance sheets, have never been
stronger. This has driven the structural reduction of the risk premium associated with investing
in external sovereign debt. This trend seems set to continue. As emerging market economies
mature, the corporate bond market will develop further in order to finance the growing domestic
consumer base. The emerging market corporate debt market is likely to grow significantly over
the next few years and offers a significant yield pick up over sovereign debt. This combination
of strong underlying emerging market fundamentals with a high yield makes emerging market
corporate bonds an attractive risk adjusted investment opportunity.”
The growth potential of emerging economies is much greater than that of countries in the
developed world.
Consumer debt levels in most emerging economies are low, whereas
concerns are rising that high levels of indebtedness in the developed world could drag down the
growth of advanced economies for some time to come.
Countries in the emerging world are also investing heavily in infrastructure and technology,
allowing them to improve productivity, which is a key driver of economic growth. It also helps
emerging market companies to compete ever more effectively against established global firms.
So as companies take on debt to expand and grow, this presents investors with increased
opportunities.
The fund will be a joint venture between Threadneedle’s highly regarded emerging market,
investment grade and high yield credit teams, as well as other specialists across our
comprehensive fixed income range with a total of £19bn*** assets under management.
*As at 31 December 2009
**Previously called the Threadneedle (Lux) Emerging Markets Low Duration Fund.
***As at 31 December 2009
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ENDS –
For further comment please contact:
Ella Tekdag, PR Executive
[email protected]
+44 (0)20 7464 5082
About Threadneedle
Threadneedle was founded in 1994. It actively manages £60.5 bn* of assets providing investment solutions for
pension schemes, insurers, private investors, corporations, mutual funds and affiliate group companies. (US$97.6bn,
€68bn). Source: Threadneedle, as at 31.12.09.
Threadneedle has investment expertise across equities, bonds, property and hedge funds with over 140 talented
investment professionals. As a truly international asset manager, Threadneedle reaches customers in over 80
countries and its distribution reaches across four continents.
For more information, visit www.threadneedle.com
Threadneedle is the international investment platform and subsidiary for Ameriprise Financial, a leading US financial
planning and services company with more than 12,000 financial advisors and registered representatives that
provides solutions for clients' asset accumulation, income management and insurance protection needs. Ameriprise
Financial was formerly known as the American Express Financial Corporation. It is an independent, publicly traded
company (NYSE: AMP). For more information, visit www.ameriprise.com.
Disclaimer:
Issued by Threadneedle Asset Management Limited. Registered in England and Wales, No. 573204, 60 St Mary Axe,
London EC3A 8JQ. Authorised and regulated in the UK by the Financial Services Authority. Threadneedle is a brand
name, and both the Threadneedle name and logo are trademarks or registered trademarks of the Threadneedle
group of companies. The research and analysis included in this document has been produced by Threadneedle for
its own investment management activities, may have been acted upon prior to publication and is made available here
incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice.