About this Strategy
The Strategy seeks to deliver consistent risk-adjusted returns, by considering the full universe of Emerging Markets (EM) hard currency bonds. It invests primarily in a diversified portfolio of sovereign, quasi-sovereign, supranational and corporate debt from EM issuers. The Strategy is benchmarked against the JP Morgan EMBI Global Diversified Index. Its opportunity set includes bonds in the index and bonds that are not index-eligible. The primary focus is on country allocation and security selection to generate excess returns, rather than relying on large thematic or macroeconomic drivers.
Investment Approach
Established and unique active approach
An active investment approach with a single strategy focus on Emerging Markets (EM) debt hard currency that has remained unchanged since inception in August 2013. The established investment style encompasses an investment universe that comprises all EM hard currency bonds. With strong on-the-ground research, the team have a proven track record.
Credit risk premia focused
Our philosophy and framework have been developed on the basis of our own extensive research of the relationship between credit ratings processes and financial market behaviour. The focus of our sovereign risk analysis framework is not only to estimate sovereign credit risk in an unbiased and systematic way but also to identify the direction of travel to guide us in determining relative investment opportunities. ESG considerations are core to our fundamental analysis.
Disciplined investment process
We employ a highly disciplined approach to country allocation, security selection and portfolio construction, which seeks to emphasize diversification and the active management of credit risk rather than global macroeconomic factors, such as rates and currency movements.
