Strategies & Capabilities

Emerging Market Debt

Emerging Market Debt (EMD) is a rapidly evolving asset class that aims to offer investors diversification benefits, enhanced yield and return potential. The increasing importance of emerging market countries to global trade and GDP elevates the attraction of EMD and we believe it should be an integral part of investor portfolio

Leader in EMD Investing

2005

Our experienced team began managing indexed EMD portfolios.

$39bn

In assets under management. ¹

Global team members including dedicated portfolio managers, traders and investment specialists. ¹

Latest Insights

Fixed Income

EMD and Fed Tapering: Why This Time is Different

The US Federal Reserve has been gearing up to slow the pace of its bond purchases.

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Fixed Income

Emerging Market Debt Market Commentary 2022 - Q1

The outbreak of the Russia-Ukraine War drove EM market turbulence in Q1, with bonds of countries most impacted selling off.

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Fixed Income

China Fixed Income: Weighing Opportunities as Access Improves

For a long time, global bond investors awaited the opportunity to gain greater exposure to the remarkable Chinese economic growth story.

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Fixed Income

Chinese Bonds: Enhancing a European Fixed Income Portfolio

Improved access for foreign investors to China’s large bond market has started a conversation around the place of Chinese bonds within a global portfolio.

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Learn more about our Fixed Income Capabilities.

Our Capabilities

Our Emerging Market Debt strategies aim to deliver the performance of all the major EMD benchmark indices through the use of sophisticated investment techniques.

Through our long-standing track record, across the full EMD spectrum, we have accumulated deep market insights and expertise of how these markets operate and perform.

We manage a variety of funds and ETFs as well as separately managed accounts that track the performance of the established institutional EMD benchmarks, as well as customised versions of these. We have considerable experience partnering with our clients to design the specific EMD exposure and strategy they want, one that is consistent with their own investment objectives and beliefs.

Established Track Records Against Four Key EMD Exposures

EMD Local Currency Sovereigns

EM local currency debt provides investors with yield enhancement and diversification benefits and is increasingly considered an integral part of an investors’ overall asset portfolio.

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EMD Hard Currency Sovereigns

EM hard currency debt offers investors a diversified source of yield enhancement for a mixture of investment grade and high yield emerging market sovereigns and is increasingly considered an integral part of an investors’ overall credit portfolio.

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Emerging Market Hard Currency Corporate Debt

Hard currency corporate debt is a younger and fast-growing part of the EMD investment universe, offering investors significant diversification benefits and yield enhancement with a lower duration compared to hard currency sovereign debt. Hard currency corporate debt also provides the most diversified exposure in the asset class.

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Emerging Market Local Currency Inflation Linked Debt

Inflation-linked EMD offers investors an interesting and complimentary exposure for their fixed income portfolios. Inflation-linked strategies in EMD can provide investors with a form of insurance, or hedge, against both ‘expected’ and ‘unexpected’ inflation and are particularly popular with domestic investors in the major EM markets.

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Our Team

Abhishek Kumar

Head of Emerging Market Debt

Kheng-Siang Ng

Asia Pacific Head of Fixed Income

David Furey

Head of Fixed Income Strategists – EMEA

Important Risk Information

Marketing Communication

State Street Global Advisors World Wide Entities

Investing involves risk including the risk of loss of principal.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without State Street Global Advisors express written consent.

The views expressed in this material are the views of the EMEA Fixed Income Specialists of State Street Global Advisors Global Fixed Income Group and are subject to change. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.

Currency Risk is a form of risk that arises from the change in price of one currency against another. Whenever investors or companies have assets or business operations across national borders, they face currency risk if their positions are not hedged.

Investing in foreign domiciled securities may involve risk of capital loss from unfavorable fluctuation in currency values, withholding taxes, from differences in generally accepted accounting principles or from economic or political instability in other nations. Investments in emerging or developing markets may be more volatile and less liquid than investing in developed markets and may involve exposure to economic structures that are generally less diverse and mature and to political systems which have less stability than those of more developed countries.

Diversification does not ensure a profit or guarantee against loss.

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This information is for informational purposes only, not to be construed as investment advice or a recommendation or offer to buy or sell any security. Investors should always obtain and read an up-to-date investment services description or prospectus before deciding whether to appoint an investment manager or to invest in a fund. Any views expressed herein are those of the author(s), are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may make different investment decisions for different clients. There are no guarantees regarding the achievement of investment objectives, target returns, portfolio construction, allocations or measurements such as alpha, tracking error, stock weightings and other information ratios. The views and strategies described may not be suitable for all investors. SSGA does not provide tax or legal advice. Prospective investors should consult with a tax or legal advisor before making any investment decision. Investing entails risks and there can be no assurance that SSGA will achieve profits or avoid incurring losses.

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