First State to launch local currency EMD fund for Williamson

First State Investments is to launch a local currency emerging market debt fund to sit alongside its existing hard currency OEIC.

The fund is likely to be led by Helene Williamson (pictured) who heads the group's EMD team, and aims to take advantage of a shift towards greater issuance of debt in local currency. The EMD market is currently $1.4trn in size with the majority of the market dominated by sovereign issues, but this is likely to grow much larger over time. The existing First State fund, which has sterling and euro share classes, invests in a mixture of local and sovereign issues. According to Philip Fielding, part of the EMD team, there is a growing trend for corporates and sovereigns to issue debt i...