Emerging Markets Debt Strategy
The strategy seeks total return and capital appreciation by investing in fixed income securities issued by governments, government-related entities and corporations located in emerging market countries denominated in both U.S. dollar and local currencies. The portfolio managers utilize a combination of top-down and bottom-up analysis in the investment process. Country analysis and allocation employ a top-down approach, while individual securities are selected using intensive bottom-up fundamental research to construct a well-diversified portfolio.
Debt securities are subject to various risks, the most prominent of which are credit and interest rate risk. The issuer of a security may fail to make payments in a timely manner. Values of debt securities may rise and fall in response to changes in interest rates. This risk may be enhanced with longer-term maturities.
Investing internationally, especially in emerging markets, involves additional risks such as currency, political, accounting, economic, and market risk.
There is a greater level of credit risk and price volatility involved with high yield securities than investment grade securities.