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 Commentary Q3 2022

EMD was challenged in a turbulent Q3 struggling against a broad investor preference for 'less risky' assets.

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Fixed Income

EMD Commentary Q2 2022

EMD struggled as bigger-than-expected US rate hikes enhanced the attraction of ‘less risky’ US dollar assets. Inflation and recession fears also weighed on investor sentiment.

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Fixed Income

EMD Commentary Q1 2022

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

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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.

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.

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.

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.

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

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