A research-driven emerging markets (EM) sovereign debt solution. We seek to generate strong relative performance versus the benchmark using in-depth research to construct a diversified portfolio of the most attractive sovereign and quasi-sovereign bonds.
Our investment philosophy is based on the principle that emerging markets debt (EMD) is a heterogeneous, semi-efficient market with multiple sources of mispricing. We believe in casting the widest possible net to identify and seek to profitably exploit opportunities, looking for them at every level of analysis – asset class, country, industry, issuer and security.
Risk-adjusted portfolio management style
- Aim to deliver true alpha through skillful country and security selection and tactfully modulating risk rather than achieving outperformance by structurally taking more risk than the benchmark.
Nimble approach
- The ability to be flexible and adapt the strategy to take advantage of the full array of opportunities benefits our clients.
An experienced, well-resourced EMD team
- Our dedicated EMD team comprises veteran investors with many years of experience of managing the full spectrum of EMD.
The team follows a methodical process that starts with the assessment of the global macroeconomic environment, then proceeds to the sovereign analysis and environmental, social, and governance (ESG) assessment.
The objective of the global macro analysis is to anticipate the general direction of global credit spreads, developed market rates, and the US dollar by examining global macroeconomic trends.
A team of dedicated regional specialists conducts the sovereign analysis. Our final assessments encompass all relevant economic and political variables. We incorporate ESG factors into our decision-making by relying on our proprietary sovereign ESG framework that adjusts for a country’s level of economic development and policy effort.
Our dedicated EM corporate analysts also review quasi-sovereign bonds on a standalone basis.
For more information about our Credit capabilities
Risks
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt.
International investments entail risks including fluctuation in currency values, differences in accounting principles, or economic or political instability. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility, lower trading volume, and higher risk of market closures. In many emerging markets, there is substantially less publicly available information and the available information may be incomplete or misleading. Legal claims are generally more difficult to pursue.
Fluctuations in exchange rates between various foreign currencies may cause the value of the investment to decline. The market for some (or all) currencies may from time to time have low trading volume and become illiquid, which may prevent the Strategy from effecting positions or from promptly liquidating unfavourable positions in such markets, thus subjecting the investment to substantial losses.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Strategy from executing advantageous investment decisions in a timely manner and could negatively impact the Strategy’s ability to achieve its investment objective and the value of the Strategy’s investments.
Governments or regulatory authorities have, from time to time, taken or considered actions that could affect various sectors of these securities market.
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