Investec Asset Management has broadened the benchmark of its flagship Investec Managed Currency fund to include 24 emerging market currencies.
Thanos Papasavvas, the head of currency management at Investec, says investors increasingly want to take advantage of improved fundamentals in the broader emerging market currency universe by diversifying their holdings.
Although the Investec Managed Currency fund has long included an active allocation to markets other than the traditional currencies, the team has decided to formally include them in the underlying benchmark. (article continues below)
Since launch in May 1980 the fund has been benchmarked against a diversified global basket of currencies that sought to reflect the liquid investable universe available to investors.
Papasavvas says as emerging market currencies have performed well over the past decade and there are set to outperform the developed markets for the foreseeable future.