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Emerging Markets Corporate Debt
The foresight and collective wisdom to discern favorable opportunities.
The emerging corporate debt markets are large and growing, and we believe the credit quality improvement opportunity of the markets is attractive. Comparing emerging market corporates with their developed market counterparts, emerging corporates may exhibit the attractive combination of better credit quality and wider spread levels.
Focused on seeking long-term total return, we invest in a broadly diversified portfolio of emerging markets corporate debt denominated in hard and local currency. Approaching corporate sector investing from the mindset of a private lender, our investment process is highly disciplined.
We invest in individual credits, informed by country selection, but chosen based on our industry perspective and in-depth credit analysis, focusing on balance sheet strength, long-term cash flow generation and capital structure. Meetings with each company’s management help us confirm our analysis.
Our valuation framework is an important component of portfolio construction as part of our ongoing search for relative value:
- We compare valuations of emerging industries with the developed country counterparts
- We compare valuations of emerging companies to their emerging industry peers
Multi-level risk management is essential, thus we regularly evaluate the portfolio from a security, company, industry and sovereign perspective.
The strategy is available as a broad portfolio that includes non-investment grade corporates and a pure investment grade emerging markets corporate debt portfolio.
Our actively managed strategy seeks to capture value through careful selection of corporate debt securities. Our widely diversified portfolios are:
- Informed by our country analyses and selection
- Constructed based on in-depth individual credit analysis
- Comprised of securities from approximately 50 emerging markets countries
- Broadly diversified to reduce dependence on events in any one company, industry, sector or country.
- Emerging markets corporate debt
- denominated in hard and local currency
Strategy Inception Date: