Ashmore SICAV Emerging Markets Local Currency Bond Fund (ELBAX)

Overview

The fund operates primarily in the financial sector, focusing on investments in debt instruments of Sovereign and Quasi-Sovereign issuers from Emerging Market Countries. By choosing to invest in debt that is denominated in the local currency of the issuer, it takes a unique stance towards tapping into the potential of developing economies. Recognizing Sovereigns as governments and Quasi-Sovereigns as entities with government-backed obligations within these markets, the fund positions itself to capitalize on the varied opportunities that these emerging economies offer. Despite being non-diverse in its structure, it aims for a robust investment strategy guided by indices such as the J.P. Morgan Government Bond Index-Emerging Markets Global Diversified or its equivalents, as decided by the Investment Manager, highlighting its focused yet flexible approach to emerging market investments.

Products and Services

• Debt Instruments Investments

  Investment in debt instruments of Sovereign and Quasi-Sovereign issuers that are predominantly from Emerging Market Countries. These instruments represent a core focus, aiming to capitalize on the growth and stability of these regions through locally denominated currency investments. This approach is key to navigating the complexity and potential of emerging markets, thereby providing investors with opportunities for potentially higher yields compared to developed market bonds.

• Sovereign Issuer Investments

  Engagement in sovereign debt involves putting capital into government bonds of Emerging Market Countries. This facet of the service caters to those looking to invest in the foundational governmental structures of these burgeoning markets. By doing so, the fund seeks to leverage the economic growth trajectories and fiscal stability inherent to these nations, thereby offering a strategic avenue for gainful investment.

• Quasi-Sovereign Issuer Investments

  Investment in Quasi-Sovereign entities, agencies, or other bodies guaranteed by an emerging market government or represented in recognized indices. This service diversifies the investment portfolio into securities that, while still closely linked to government backing, offer alternative insights and exposures to the emerging market's financial landscape. It blends the security of government backing with the innovative potential of government-affiliated entities.

• Index-Guided Investment Strategy

  Utilization of the J.P. Morgan Government Bond Index-Emerging Markets Global Diversified or similar indices for informed investment decisions. This strategic approach ensures that investments are aligned with the broader market performance and trends within the emerging markets. By adhering to respected indices, the fund aims to optimize its investment strategy, focusing on securities that promise sustainable returns while managing the associated risks effectively.