EMD Hard Currency Sovereigns
Strategy managed against the JP Morgan EMBI Global Diversified Index
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.
Our strategy, managed against the JP Morgan EMBI Global Diversified Index, invests in the hard currency debt of emerging market countries and aims to deliver the performance of the index by matching its risk and return characteristics including country, duration and term structure exposure, whilst also minimising the cost of implementation.
As of the end of June 2020, the JP Morgan EMBI Global Diversified Index was composed of 74 EM countries, had a duration of 7.83 years and an S&P credit rating of BBB-.
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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.
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