EM Corporate Bond: how we invest

November 2019
Samy Muaddi , Portfolio Manager

 

Our investment process is analyst led. They are the heart of the organisation and the output of their bottom-up work is what drives the investment process. That said, when constructing portfolios there are three variables I look at to supplement their bottom-up work.

  • The first is governance. We have a four-decade history of looking at EM governance, but also partnering with our in-house responsible investing team on ESG parameters.
  • Second would be liquidity, and in working with our traders to measure every transaction on a post transaction cost basis, we want to be  sure we're paid for the relative illiquidity of EM debt.
  • Third and final would be the macro factors. We know in some countries the macro will outweigh the micro, and we need to size our risk accordingly for that conviction.

So it's the combination of that bottom-up analyst-driven process and a consistent portfolio construction process that leads to the end output.

 

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201910-992347

RELATED FUND
SICAV
Class I USD
ISIN LU0596126465
A diversified portfolio of typically 100 to 150 securities in mainly corporate bonds from emerging market issuers. We would expect the bulk of value added to come from security selection, with the rest from sector selection. We employ a long-term investment horizon, combined with low portfolio turnover. View More...
3YR Return
(Annualised)
4.74%
Avg Coupon
5.55%
FACTSHEET
Fund Size
(USD)
$212.6m
Avg Maturity
7.43 yrs
Avg Duration
5.69 yrs
Emerging Markets Debt