Henderson Global Investors is to reveal its emerging markets currency fund, which will form the latest addition to the Horizon SICAV range.

The Henderson Horizon Emerging Markets Currency fund is based upon Henderson’s existing global currency strategy fund and will be governed by Bob Arends.

Henderson’s currency team consists of five staff.

Arends, head of currency at Henderson said he expects long-term global economic growth to be largely driven by growth in emerging markets.

He explained, ‘The emerging economies are already seeing upward pressure on interest rates as inflation takes hold.

‘We expect emerging market interest rates to increase significantly as the central banks try to prevent their economies from overheating, and we expect the emerging markets currencies to appreciate accordingly.

'An emerging markets currency strategy, with good systematic risk control can deliver equity-like returns at significantly lower-risk. Currency is by far the most liquid asset class in the world and is still growing fast, with the strongest growth in emerging market currencies.’

Mark Skinner, co-head of global distribution at Henderson, is betting that emerging markets currencies will be big over the coming years.

He said, ‘Currency is already a key driver of return to a foreign investor in emerging markets and investing directly in emerging market currencies could be a major asset class allocation in the future.’

Henderson is due to confirm the pricing structure of the new fund later today (and this story will be updated accordingly).