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Ashmore unveils distressed financials fund

Ashmore Investment Management has launched a Guernsey-domiciled fund investing in illiquid financial assets in emerging markets.

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Ashmore Investment Management has launched a Guernsey-domiciled fund investing in illiquid financial assets in emerging markets.

The Global Consolidation and Recovery Fund has been established to maximise the investment return from distressed or illiquid emerging market financial assets that have been negatively impacted by the global financial crisis.

The fund, which will open quarterly for new subscriptions, will accept cash investments and in specie transfers from institutional investors of their own emerging market financial assets.

Ashmore said the fund is planned to have a duration of at least five years and investors will be able to exit only after the third and fourth years, subject to redemption charges.

UBS Backing

UBS has provided the initial core seed investment for the fund, a class B Guernsey collective investment scheme. The minimum investment for the fund is US $1m or currency equivalent and the base currency is US $.  

Ashmore launched a similar fund to capitalise on distressed assets after the financial crisis of 1998. Called the Russian Consolidation and Recovery Fund, the firm said it returned 103.9% annually over four years.
 

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