Emerging Markets Debt Local Currency Fund

Investment Objective

Risk-adjusted returns

Fund Characteristics

The Fund seeks to provide risk-adjusted returns through investments in local currencies and local interest rates of emerging markets.

Investment Approach

  • Invests in a diversified portfolio of debt instruments denominated in local currencies comprised predominantly of fixed-income securities, money market instruments, derivatives, and deposits, with strategic emphasis on interest-rate duration exposure and/or currency-risk exposure.
  • Fixed-income securities and money market instruments are predominantly issued by or have exposure to the currencies of developing countries in Latin America, Asia, Central Europe, Eastern Europe, Africa, and the Middle East.
  • 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