PURSUING HIGH YIELDS IN EMERGING MARKETS
Emerging markets portfolio manager Samy Muaddi connects virtually with analysts around the globe to discuss findings from field visits.
Emerging market bonds. Some people see it as an investment. I see it as an opportunity. An opportunity to generate the capital that’s needed to finance infrastructure, create employment, and broaden the tax base in developing countries. Emerging market bonds can be an engine for economic development.
Unfortunately, it doesn’t always work out that way. Sometimes the capital is squandered and the opportunity is lost. The unexpected is a daily occurrence in my profession.
And I can’t do it alone. Emerging market investing is a team sport.
Hello, hello, can you hear me?
Hello, Samy. We can hear you well.
Good. How is the weather in London?
Oh great, it’s raining finally.
Oh, well welcome back. I’m curious to hear about your site visit.
It went very well. We found it to be insightful, and it was good to be on the ground actually visiting the plant. It’s made us feel more comfortable with our investment decision.
Yeah, I’d agree.
Cognitive diversity is essential to understanding emerging markets. Our team has 60 investment professionals from 23 nationalities speaking 27 languages.
We make over 200 site visits a year. On-the-ground research generating investment ideas that are debated by a diverse team leads to informed decision-making.
Ultimately, when you're investing in developing countries, you're not just buying into a business—you're trying to solve complex challenges of society, business, politics, and culture.
We focus on the details, not just the headlines.
These countries won’t grow without capital. The lives of thousands of people can be affected by a small investment in the corner of that country’s industrial sector.
It takes a degree of intellectual humility to do this job given the amount of unknowns.
With the help of my team, I make these decisions on behalf of our clients, every day. Across hundreds of businesses. Spanning over 70 countries.
And that’s why I go beyond the numbers.
“Passion for the asset class is key in this business. I work during U.S. hours then put my daughter to bed and work on Asia hours. You're not going to want to do that unless you're passionate about the field you're in.”
12 years of investment experience, all of which have been at T. Rowe Price
B.A., summa cum laude, University of Maryland
Has traveled to over 70 countries in the last ten years.
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Pursuing high yields in emerging markets
This material is being furnished for general informational purposes only. The views and opinions expressed are those of the investment analyst at the time of production and are subject to change without notice. There is no guarantee that these views will come to pass, and may differ from those of other T. Rowe Price group companies and/or associates. Information and opinions are derived from proprietary and non-proprietary sources deemed to be reliable; the accuracy of those sources is not guaranteed.
All investments are subject to risk, including the possible loss of principal. International investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as specific country, regional, and economic developments. These risks are generally greater for investments in emerging markets.
Bonds may decline in response to rising interest rates, a credit rating downgrade or failure of the issue to make timely payments of interest or principal. To the extent a fund holds foreign bonds, it will be subject to special risks, including potentially adverse political and economic developments overseas, greater volatility, lower liquidity, and the possibility that foreign currencies will decline against the dollar. A fund’s investments in emerging markets are subject to the risk of abrupt and severe price declines.
This material does not constitute a distribution, offer, invitation, recommendation, or solicitation to sell or buy any securities; it does not constitute investment advice and should not be relied upon as such. Investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.