Threadneedle has launched an absolute emerging market macro fund following demand from clients.
The fund manager said the UCITS III fund would invest aim to identify the most attractive macro opportunities in global emerging markets - investing in emerging market debt and currencies and exclude equities.
Threadneedle's fund will aim to achieve a positive absolute return of 7.5% - 12.5% on an annualised basis on a long term investment horizon and will be independent of any benchmark limitation.
The lead manager on the fund will be Threadneedle head of emerging market debt Richard House, who has 15 years experience in emerging markets investment and three years hedge fund experience.
He will be supported by head of emerging market strategy Agnes Belaisch, who wiill be deputy manager on the fund
Commenting on the launch of the fund, House said: "The new fund allows us to exploit the many macro based opportunities that exist across the emerging market universe without the constraints of any index.
"Within the fund, we have the flexibility to express our highest conviction macro views via sovereign credit, rates and foreign exchange, both on an absolute and relative basis. Using processes and resources that we have successfully employed over the years in our emerging currencies hedge fund, we aim to deliver absolute returns to a broader range of investors under UCITS III."
Institutional investors in the fund will be charged a 1% annual management charge and a 20% performance fee. The performance fee is over a cash hurdle rate of 3-month US dollar Libor.
