Send us an enquiry

Send us an enquiry

Although the stock of sovereign dollar debt is declining there are increased levels of liquidity & transparency in the marketplace. Although dollar debt prices are benefiting from a more widely diversified investor base, inefficiencies still remain that can be exploited by fundamental research.

Strategy Objective

Strategy Objective

To outperform the return of the JPM Morgan Government Bond Index – Emerging Markets Diversified by 1% a year. 

This strategy is currently a synthetically run portfolio.

Product Fact Sheets

Product Fact Sheets

For enquiries about this strategy or to request a fact sheet, please use the enquiry form in the left column.

Product Overview

Product Overview
Benchmark: JPM Morgan Government Bond Index – Emerging Markets Diversified
Target Alpha: 1% pa
Investment area: Asia, Latin America, Europe, the Middle East and Africa
Average holdings: 30

Investment Process

Investment Process

Spreads have narrowed significantly in this asset class over the past five to ten years. This is largely justified as the strength of emerging economies sovereign balance sheets means default risk is now largely a function of willingness rather than ability to pay. An understanding of the benefits of prudent fiscal policy, independent inflation targeting and floating FX rate regimes have been key to strengthening sovereign balance sheets.

  • We use fundamental analysis to identify countries with strong and improving positions
  • We believe we can add value through active management
  • We ensure that the portfolio has similar risk and return characteristics to the Index
  • Asset allocation is set at a monthly meeting with input from our fixed income and county specialists.

Investment Philosophy

Investment Philosophy

We believe emerging markets and Asia are different to developed markets and are changing rapidly. It takes experience and a specialist approach to keep up with these changing markets. The way we invest is built on this rapid change which means we can add value for our customers through active management.

Team Profile

Team Profile