NEW YORK, Oct. 30, 2012 /PRNewswire/ -- Stone Harbor Investment Partners LP, ("Stone Harbor") a global fixed-income investment management firm focused on credit risk strategies and asset allocation, announced today that Stone Harbor Emerging Markets Total Income Fund (the "Fund") has successfully raised $240 million in its common share offering (before deduction of the sales load and offering expenses and exclusive of the underwriters' overallotment). The Fund has granted the underwriters an option to purchase additional common shares at the public offering price less the sales load within 45 days of the date of prospectus, solely to cover overallotments, if any. Assuming the full exercise of the underwriters' overallotment option, which may or may not occur, overall sales total $276 million.
The Fund began trading on the New York Stock Exchange (NYSE) on Friday, October 26, 2012 under the symbol "EDI". The Fund's common shares were distributed through a group of underwriters led by Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., and UBS Securities LLC. Stone Harbor is the Fund's investment manager and is responsible for determining the Fund's overall investment strategy. ALPS Distributors, Inc. provides certain distribution-related services to the Fund.
The Fund's investment objective is to maximize total return, which consists of income and capital appreciation from investments in emerging markets securities. The Fund seeks to achieve its investment objective by investing at least 80% of its net assets (plus borrowings for investment purposes) in emerging markets debt and up to 20% of its total assets in emerging markets equity
"We believe emerging market countries will continue to lead the global recovery," said Peter Wilby, Chief Investment Officer and Portfolio Manager at Stone Harbor. "These markets offer a number of potential advantages compared with developed markets, in many cases including better fundamentals, higher growth rates and levels of reserves, which may place them in a strong financial position to repay their debt and help protect against external shocks."
This is Stone Harbor's second closed-end fund, following the Stone Harbor Emerging Markets Income Fund trading under the ticker "EDF".
Stone Harbor Investment Partners LP is a global institutional fixed income investment manager, specializing in credit and asset allocation strategies. The firm manages institutional clients' assets in a range of investment products: emerging markets debt, high yield, bank loans, as well as multi-sector products, such as global high yield and core plus type investing. The firm's investment strategies are based on fundamental insights, derived from a combination of proprietary research and the in-depth knowledge and specialized experience of the firm's team. Based in New York, Stone Harbor employs over 130 people across its headquarters and offices in London and Singapore. Stone Harbor is a 100% employee-owned limited partnership and as of September 30, 2012, the firm has over $58 billion of assets under management.
IMPORTANT LEGAL DISCLOSURES
This material is solely for informational purposes. This material shall not constitute an offer to sell or the solicitation to buy any security or investment advisory services. Nothing contained herein constitutes investment, legal, tax or other advice nor is it to be relied on in making an investment or other decisions. Information contained herein is only current as of the date indicated and may be superseded by subsequent market events or for other reasons. Statements concerning financial market trends are based on current market conditions, which will fluctuate. Investing entails risks, including the loss of principal.
There is no assurance that the Fund will achieve its investment objective. An investor should consider, among other things, the Fund's investment objective, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the Fund. Please read the prospectus carefully before investing. You may obtain a copy of the prospectus by contacting your financial professional or calling 1-877-206-0791, option 1.
The Fund's investment objective is to maximize total return, which consists of income and capital appreciation from investments in emerging markets securities. There is no assurance that the Fund will achieve its investment objective. The Fund normally will invest at least 80% of its net assets (plus borrowings for investment purposes) in Emerging Markets Debt. "Emerging Markets Debt" includes fixed income securities and other instruments (including derivatives) that are economically tied to emerging market countries, that are denominated in the predominant currency of the local market of an emerging market country or whose performance is linked or otherwise related to those countries' markets, currencies, economies or ability to repay loans. The Fund normally expects to invest up to 20% of its total assets in Emerging Markets Equity. "Emerging Markets Equity" includes securities issued by either single country or regional exchange-traded funds, common stocks, preferred stocks, other equity securities and other instruments (including derivatives) that are economically tied to the equity markets of emerging market countries, that are denominated in the predominant currency of the local market of an emerging market country or whose performance is linked or otherwise related to those countries' markets, currencies, or economies. Stone Harbor does not have an established performance record investing in equity securities.
Investing in the Fund involves risks, including the risk that you may receive little or no return on your investment and that you may lose part or even all of your investment.
The Fund is a closed-end fund and closed-end funds do not continuously issue shares for sale as open-end mutual funds do. The Fund trades on the New York Stock Exchange under the symbol EDI. Investors wishing to buy or sell shares need to place orders through an intermediary or broker.
The Fund should be considered as only one element of a complete investment program. An investment in the Fund should be considered speculative. Closed-end funds frequently trade at a discount to their net asset values.
For more complete information, please call 1-877.206.0791, option 1 (toll-free) or visit the Fund's website - www.shiplpcef.com.
This material may include statements that constitute "forward-looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Fund, market or regulatory developments. The views expressed herein are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed herein are subject to change at any time based upon economic, market, or other conditions and Stone Harbor undertakes no obligation to update the views expressed herein. While we have gathered this information from sources believed to be reliable, Stone Harbor cannot guarantee the accuracy of the information provided. Securities and indices discussed are not recommendations and are presented as examples of issue selection or portfolio management processes. They have been picked for comparison or illustration purposes only. No security or index presented within is either offered for sale or purchase. Stone Harbor reserves the right to change its investment perspective and outlook without notice as market conditions dictate or as additional information becomes available.
SOURCE Stone Harbor Investment Partners