ABOUT THIS STRATEGY
The strategy seeks to provide total return in excess of the benchmark by investing primarily in emerging market corporate bonds and other fixed and floating rate securities, with a preference for USD-denominated issues. The strategy will invest at least 70% of its net assets in emerging market corporate bonds and other fixed and floating rate securities. The strategy may invest up to two-thirds of its net assets in non-investment grade securities including up to 20% of its net assets in distressed debt securities. A variety of instruments/strategies may be utilized in order to achieve the objective including, but not limited to, forward foreign exchange contracts (including non-deliverable forwards), interest rate futures, bond futures, options and OTC swaps such as interest rate swaps, credit default swaps, credit default swaps on indices.
Talented team that brings different skill sets, with portfolio managers drawing on bottom-up credit analysts who are accountable for the ideas they generate.
Flexible Portfolio Construction
Initial filtering (thematic and quantitative) provides focus for idea generation. Macroeconomic analysis helps tilt portfolio exposures to profit from directional shifts and reduce risk. Core credit analysis is complemented by active duration management and off-benchmark investments, which may include sovereign bonds.
The team seeks to minimize or exploit volatility as appropriate. Scenario analysis and portfolio diversification help reduce risk with interest rate exposure actively managed.