Colonial First State launches emerging markets debt team

Colonial First State Global Asset Management (CFSGAM) has created an emerging markets debt team that will develop capabilities in emerging corporate debt, emerging debt issued in strong currencies, and UK currency debt.

Emerging market debt holds strong prospects for investors over the next 10 years, said CFSGAM regional managing director for Australia and New Zealand Joanna Davison.

"The establishment of an emerging markets debt team marks a significant expansion of our capabilities in Europe, the Middle East and Asia, with intentions to take this offering to other regions in the longer term," said Davison.

She added that the establishment of the team would build on existing capabilities in the emerging market and fixed income areas, delivering opportunities for organic growth for CFSGAM globally.

The emerging markets debt team will be based in the UK and Asia, and will be headed by Helene Williamson.

"There is significant institutional interest in emerging markets debt, particularly in Australia and continental Europe, but also in Asia, the UK and the US," said Davison.

"Investors are looking to take advantage of a rise in demand for debt from corporate and sovereign borrowers in South America, Russia and Asia. This move has been prompted by concerns over inflation, low government bond yields and the deteriorating creditworthiness of some European countries," Davison added.