BNP Paribas Investment Partners has launched its first multi asset income fund focusing on emerging markets.

The new vehicle - domiciled in Luxembourg - will invest in equities, local sovereign debt, external sovereign debt, corporate debt, currencies and commodities. 

Dubbed Parvest Multi-Asset Income Emerging, the fund will be is managed by BNP Paribas Investment Partners’ multi- asset solutions team with French bank’s securities services division acting as custodian.

“In the current environment of sustained low interest rates and negative government bond yields, income is an increasingly scarce commodity and emerging markets can offer attractive higher-yielding investment opportunities,” said Colin Graham, chief investment officer of multi asset solutions at BNP Paribas Investment Partners.

“Market dispersion has risen of late, meaning that not all emerging markets are equal.  The emerging markets universe consists of multiple asset classes, each with different risk and return profiles and different behaviours, depending on the economic cycle. 

“By combining our established multi-asset income capabilities with the first-hand knowledge and understanding of emerging markets that our strong local presence gives us, we are able to identify what we consider to be the most attractive income opportunities from across these asset classes in order to meet the needs of our clients.”