Emerging Markets Debt Hard Currency Fund

Investment Objective

Risk-adjusted returns

Fund Characteristics

The Fund seeks to provide risk-adjusted returns through investments in hard-currency-denominated debt issued in emerging markets.

Investment Approach

  • Invests in a diversified portfolio of debt instruments, denominated in major currencies (mostly in U.S. dollars), issued by government or corporate issuers in developing countries.
  • The majority of investments are in South and Central America (including the Caribbean), Central Europe, Eastern Europe, Asia, Africa, and the Middle East.
  • Seeks to invest in countries where we can assess specific political, economic and ESG-related risks.
  • ESG analysis is fully integrated into our disciplined investment process. Based on multiple ESG factors, our portfolio managers and analysts develop a proprietary ESG score for each issuer, which helps inform our risk-management approach.

Why Consider This Fund?

  • The historical yield advantage of emerging markets debt over developed markets debt provides the potential for attractive risk-adjusted returns.
  • A combination of bottom-up and top-down expertise deepens our understanding of performance drivers, improving the decision making process.
  • The breadth of the team allows for specialization and regional focus, enhancing our ability to identify opportunities and to avoid unattractive risks.
  • The Fund is actively managed and is not constrained by a benchmark


  • The value of shares and any income from them can increase or decrease and an investor may not get back the amount originally invested
  • Where investments are made in currencies other than an investor's base currency, the value of those investments will be affected (favourably or unfavourably) by movements in exchange rates
  • Investing in the bond market is subject to certain risks including market, interest rate, issuer, credit, and inflation risk. These risks may be enhanced in below investment grade securities
  • Emerging markets or less developed countries may face more political, economic or structural challenges than developed countries and investments in these countries are subject to greater risks