Emerging markets debt offers the potential for attractive returns as well as diversification benefits. It is also an ideal asset class for active management, replete with inefficiencies stemming from uneven information flows and market segmentation. The dedicated and experienced emerging markets team strives to identify the most compelling risk-adjusted opportunities in both US$-denominated and local currency bonds by following a rigorous investment process based on in-depth fundamental country analysis and supported by the discipline of quantitative models.
The Firm has a proud history of investing in emerging markets debt securities that dates back to the mid-1990s when we first began making allocations to the asset class in multi-sector portfolios (e.g. U.S. and Global Core Plus, etc). We have been managing standalone Emerging Markets Debt – US$ Denominated portfolios against the JPMorgan EMBI Global and variants since 1999. We also have one of the longest track records in the industry of managing dedicated local currency emerging markets debt (since April 2006, a few months after JP Morgan first introduced the GBI-EM local currency debt family of indices).
|US$ Denominated||Seeks opportunities to benefit from improving credit quality and spread compression in a diversified portfolio of US Dollar sovereign and quasi-sovereign bonds, supplemented with carefully chosen corporate issues.|
|Local Currency||Seeks to maximize returns from both currency and duration while reducing correlation to US Treasuries by investing in local currency debt instruments with pure sovereign risk.|
|Corporate||This growing and increasingly diversified asset class offers an attractive alternative to US Dollar sovereign exposure.|
|Opportunistic||A portfolio of the Firm's "Best Ideas" across all types of emerging markets debt, including both US Dollar and local currency bonds.
|Total EM||Dampen the volatility of Emerging Markets equities by building a diversified portfolio of EM investments across the entire spectrum of publicly traded asset classes.|
*Flexible to meet client guidelines and objectives.