
Featured insight
Deliberating EM debt
Our EM debt team tackles the topics that are top of investors’ minds and provides insights for asset allocators currently deliberating EM debt.
Total return strategy focused on emerging markets with positive ESG dynamics
Investment Approach
Aims to generate improved risk-adjusted returns via a total-return, benchmark-agnostic approach. Places a heavy emphasis on proprietary, forward-looking ESG scores
Investment Opportunity
Core solution for sustainable EM debt exposure, seeking to tap into the best opportunities among countries with improving ESG trends
Investment Universe
Broad EM opportunity set, including hard currency bonds, FX and local rates, and green and sustainable bonds
Provides access to a wide range of opportunities across the EM debt universe with a focus on countries with improving ESG metrics
In-house sustainable bond framework helps selection of best opportunities and most robust sustainable instruments
Aims to harness EM debt's yield pick-up and exploit the broad array of relative-value opportunities
Bottom-up approach selects individual best ideas to achieve desired asset allocation, avoiding excessive trading
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.
Sustainable, impact or other sustainability-focused portfolios consider specific factors related to their strategies in assessing and selecting investments. As a result, they will exclude certain industries and companies that do not meet their criteria. This may result in their portfolios being substantially different from broader benchmarks or investment universes, which could in turn result in relative investment performance deviating significantly from the performance of the broader market.