Emerging market impact debt strategy initiated by Ashmore

Ashmore Launches Emerging Markets Impact Debt Strategy

Ashmore, a leading global investment manager with a rich history dating back to 1992, has announced the launch of an emerging markets impact debt strategy. This strategic move aims to address a significant funding gap in developing economies, estimated at $24 trillion, to achieve the United Nations Sustainable Development Goals (SDGs).

The strategy, which is a daily dealing fund, targets market rate risk-adjusted returns in a liquid asset class. Ashmore, headquartered in London and with offices across the world, has ambitions to contribute to a step change in emerging markets impact investing.

The market for emerging market impact debt has experienced remarkable growth, jumping from $75 billion to over $600 billion in the past four years. This trend reflects a growing global recognition of the potential of impact investing in driving sustainable development.

Ashmore's strategy is designed to develop scalable impact strategies with multi-billion dollar capacities. Every potential investment will be subjected to a rigorous impact assessment and fundamental assessment process.

The strategy's launch comes at an opportune time, as the performance of emerging market impact debt has consistently outperformed developed market debt of the same credit quality.

Ashmore was initially part of the Australia and New Zealand Banking Group but became independent in 1999. The company listed on the London Stock Exchange in 2006 and as of the end of March, managed $46.2bn.

In a related development, PGIM, a global investment management firm, recently launched its own Emerging Markets Impact Debt Strategy. Cathy Hepworth, Head of Emerging Markets Debt, and Denis Cole, Emerging Markets Debt Portfolio Specialist, discussed opportunities in this field.

Ashmore will initially be targeting institutional investors for its impact debt strategy. The company has a dedicated impact team that was established last year, reflecting its commitment to this area of investing.

As Ashmore continues to grow and evolve, its focus on impact investing and emerging markets is a testament to its commitment to sustainable development and making a positive impact on the world.