Emerging Markets

Emerging Market Hard Currency Corporate Debt Strategy managed against a variety of EMD hard currency corporate benchmarks from key index provider

30 June 2020

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.

Our EM hard currency corporate strategies use sophisticated indexing techniques which aim to deliver the performance of EM hard currency corporate markets, as measured by EM Hard Currency indices.

State Street has a long-standing track record managing hard currency corporate debt as part of blended sovereign, corporate hard currency, and stand-alone portfolios. We have an in-depth knowledge and considerable expertise in the various indices and index providers in this space, including the flagship JP Morgan CEMBI Broad Diversified Index.

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The views expressed in this material are the views of the EMEA Fixed Income Specialists of State Street Global Advisors’ Global Fixed Income Group through the period ended 30 June 2020 and are subject to change.
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Equity securities may fluctuate in value in response to the activities of individual companies and general market and economic conditions. Foreign investments involve greater risks than U.S. investments, including political and economic risks and the risk of currency fluctuations, all of which may be magnified in emerging markets.

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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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