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.
Our strategy, managed against the JP Morgan GBI-EM Global Diversified Index, invests in the local currency denominated debt of emerging market countries. This aims to deliver the performance of the index by matching its key risk and return characteristics including country exposure, currency and duration exposure, whilst also minimising the cost of implementation.
As of the end of June 2020, the JP Morgan GBI-EM Global Diversified Index was composed of 19 emerging market countries and currencies, had a modified duration of 5.43 years, and an S&P credit rating of BBB+.
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