The Strategy aims to achieve long-term total returns by investing in emerging market bonds – spanning local currency bonds, hard currency sovereign bonds, currencies and corporate bonds.
01A robust and repeatable investment process designed around the three Compelling Forces™ that drive markets: economic fundamentals, valuation and market behaviour. |
02Driven by our conviction: we are not afraid to invest where we have conviction, but if we don’t think a country or company’s bonds will outperform, we don’t own them. |
03Underpinned by a comprehensive investment toolkit — ranging from detailed debt sustainability analysis tools to quant models that harness big data sets — which helps our specialists pinpoint the best investment ideas for investors. |
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.