Emerging Markets Corporate Debt

For investors seeking to enhance or diversify their portfolio through exposure to emerging market corporate fixed income

Overview

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.

INVESTMENT APPROACH

High Conviction
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.

Risk Management
The team seeks to minimize or exploit volatility as appropriate. Scenario analysis and portfolio diversification help reduce risk with interest rate exposure actively managed.

Featured Insight

Fixed Income Perspectives

Quarterly insight from our fixed income teams to help clients navigate the risks and opportunities ahead.

Featured Insight

February 2019 | Thematic Research | Emerging Markets

The Case for Emerging Market Corporate Bonds

Learn why the emerging market corporate bonds asset class is increasingly viewed as a valuable source of returns and portfolio diversification.

PORTFOLIO MANAGEMENT

Jennifer James

Portfolio Manager | Lead Emerging Markets Analyst

Industry since 1998. Joined Firm in 2014.

Andrew Mulliner, CFA

Head of Global Aggregate Strategies | Portfolio Manager

Industry since 2006. Joined Firm in 2007.

Performance

RETURNS (%) (As of 06/30/2020)
Composite Gross Composite Net JP Morgan Corporate Emerging Markets Bond Index
 
3M YTD 1YR 3YR 5YR Since Inception
(12/01/2014)
Composite Gross 11.12 0.88 5.74 4.66 5.80 5.93
Composite Net 10.74 0.16 4.25 3.19 4.31 4.44
JP Morgan Corporate Emerging Markets Bond Index 11.15 -0.16 3.74 4.52 5.13 4.90
RETURNS (%) (As of 08/31/2020)
Composite Gross Composite Net JP Morgan Corporate Emerging Markets Bond Index
 
3M YTD 1YR 3YR 5YR Since Inception
(12/01/2014)
Composite Gross 5.78 4.16 7.59 5.14 6.54 6.35
Composite Net 5.41 3.18 6.08 3.66 5.04 4.85
JP Morgan Corporate Emerging Markets Bond Index 6.08 3.08 6.02 5.02 6.14 5.33
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