Ephraim Global, the Tokyo-based asset management company, has announced today the launch of a new fund within its range of fixed income solutions, the Ephraim Global Enhanced Frontier Markets Fund.
The new fund will invest mainly in the private debt, institutional debt and currencies of international frontier markets, seeking to reap the benefits of the opportunities that have sprouted from the market displacements generated by the 2008 financial crisis.
The Ephraim Global Emerging Markets Opportunities Fund has returned in excess of 5% annually since its launch in July 2007, and its mandate has been extended to encompass the broader frontier markets; consequently the fund’s name has been changed to the Ephraim Global Enhanced Frontier Markets Fund and will focus on surpassing its previous benchmark over the long term. The fund will continue to be managed by Koji Katayama who has managed the fund ever since its inception.
The frontier markets present an enticing alternative for clients pursuing returns and yields that are not as strictly connected with the major international markets. Such markets include Argentina, Kazakhstan and India, and also countries such as Pakistan or Iran, countries which used to be regarded as “emergent” yet due to international affairs and geo-political considerations have had their economies and market performances negatively impacted by on-going strife.
Mr. Katayama has a wealth of experience concerning frontier market debt opportunities and considers that there are much broader opportunities for value in international frontier markets. He commented: “The new economic structure which has resulted out of the most recent international financial crisis means that market displacements are no longer secluded or isolated. Continuous conflicts around the world and their associated risks have given way to market volatility, and low development rates have led to unfeasible levels of debt for both private as well as corporate credits. These new market conditions uncover new value investment opportunities in minor markets which have been previously insufficiently researched”.
Founded in 2005, Tokyo-based Ephraim Global is an international asset management group serving clients around the world. The company offers a wide range of financial advisory and planning services, bond and mutual funds, diversified asset portfolios, pension plans and account management for private and institutional clients alike, focusing on diversification, extensive research and a risk-aware investment approach.
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