Emerging Markets Blended Debt Strategy

An actively managed portfolio, harnessing all the potential benefits of the asset class in a one-stop-shop for investors
An actively managed portfolio, harnessing all the potential benefits of the asset class in a one-stop-shop for investors

Strategy overview

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.

Key Features
  • Our investment process is built on multi-year experience in investing across the emerging market debt asset class.
  • Our well-resourced Emerging Market Debt team includes experts in sovereign and corporate debt and specialists for all emerging market regions.
  • This gives us the breadth and depth needed to exploit the opportunities in this expanding investment universe.
  • We adopt a two-pronged approach to harnessing potential alpha: top-down allocation actively favours the most attractively positioned market segments; bottom-up selection seeks out the best opportunities within each market.
We are not afraid to invest where we have conviction. But we never compromise on diversification in our portfolio.
Peter Eerdmans
Grant Webster

Investment approach

01

A robust and repeatable investment process designed around the three Compelling Forces™ that drive markets: economic fundamentals, valuation and market behaviour.

02

Driven 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.

03

Underpinned 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.

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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
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. 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. 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.