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.