Emerging Markets Local Currency Dynamic Debt Strategy

Helping investors tap into the long-term return and diversification potential of a richly varied investment universe.
Helping investors tap into the long-term return and diversification potential of a richly varied investment universe.

Investing actively across a richly diverse investment universe

The Strategy aims to provide income and long-term capital growth by investing in sovereign bonds issued by emerging market borrowers.
Key Features
  • Managed by a well-resourced team with expertise spanning all emerging market regions.
  • Primarily bottom-up process actively seeks out the best country and currency positions from across the investment universe.
  • A robust and disciplined process, underpinned by an industry-leading tool-kit, drives investment decision-making.
Both currency volatility and bond duration are important – and distinct – market drivers. We consider our exposure to these separately, aiming to get the best from each of them for our investors.
Werner Gey van Pittius
Antoon de Klerk

Investment approach

01

Rigorous approach to bottom-up selection of bonds and currencies, driven by views of investment specialists.

02

Dedicated top-down process to ensure overall portfolio risk exposure is optimal and in-line with our views.

03

Industry-leading investment toolkit aids investment decision-making and supports a robust and repeatable process.

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General risks
Past performance is not a reliable indicator of future results and performance targets may not be achieved; losses may be made.

Specific risks
Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income. Default: There is a risk that the issuers of fixed income investments (e.g. bonds) may not be able to meet interest payments nor repay the money they have borrowed. The worse the credit quality of the issuer, the greater the risk of default and therefore investment loss. Derivatives: The use of derivatives may increase overall risk by magnifying the effect of both gains and losses leading to large changes in value and potentially large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss. Interest rate: The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise. Emerging market (inc. China): These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems.

Important information
All information is as at 30 June 2020 unless otherwise stated.