An unconstrained approach, targeting a smoother return path
Investment Approach
Explores opportunities across the entire investment universe, without index constraints. Proprietary ESG analysis and process embeds ESG risk management in portfolio construction
Investment Opportunity
Caters to investors who seek access to the EM local currency debt asset class via a smoother return path than the overall market
Investment Universe
Full EM opportunity set, including FX and local rates, and (opportunistically) hard currency debt
Provides yield pick-up available from the local EM debt universe, with a focus on structurally improving markets
Aiming for lower volatility than the market; biased towards lower volatility markets
Favours economies with improving long-term dynamics and superior return potential over the long term
Aims to outperform in falling markets and provide a higher risk-adjusted return profile than the overall market
Changes in the relative values of different currencies may adversely affect the value of investments and any related income.
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.
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.
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.
The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise.