Emerging Markets Hard Currency Debt Strategy

A diversified portfolio comprising our best ideas from across the broad and diverse hard currency debt market.
A diversified portfolio comprising our best ideas from across the broad and diverse hard currency debt market.

A diversified portfolio comprising our best investment ideas

The Strategy aims to provide income and generate long-term capital gains by selectively investing in debt issued by emerging market borrowers and denominated in the world’s major currencies.
Key Features
  • Our well-resourced team of experts spans all emerging market regions, including frontier markets. This helps us to harness the fullest range of opportunities from this diverse and expanding investment universe.
  • We focus on bottom-up investment decisions based on the relative strengths of individual countries. We believe this approach leads to a more consistent performance path than top-down investment decisions.
  • Although we invest with conviction, we never compromise on diversification: the portfolio comprises our best ideas from across the investment universe.
This investment universe is richly diverse, with much to offer discerning investors. Broad and deep expertise is vital for success.
Werner Gey van Pittius
Thys Louw

Investment approach

01

Our best-in-class sovereign credit toolkit – ranging from detailed debt sustainability analysis tools and budget tracking to quant models that harness big data sets – helps our specialists pinpoint the best investment ideas.

02

In-line with our ‘compelling forces’ framework, We place a strong emphasis on peer-reviewed credit fundamentals, complimented by the analysis of valuations and market behaviour dynamics.

03

While always ensuring portfolio diversification, we are not afraid to invest where we have conviction. Equally, if we do not think a country’s bonds will outperform, we do not own them.

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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
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. Emerging market: 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. Interest rate: The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise.

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