Emerging Markets Debt


Featured Strategies:

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.

Investment Process

Step 1 - Country Analysis and Allocation

  • Top-down analysis determines a country's ability and willingness to pay
  • Macroeconomic analysis - structure of economy, indicators, and ratios
  • Political risk assessment - structure of government and economic policy

Step 2 - Issue Selection

  • Bottom-up, fundamental research driven
  • Sovereign, quasi-sovereign, or corporate
  • Investment grad or high yield
  • U.S. dollar or local currency

Step 3 - Portfolio Construction and Opportunistic Trading

  • Duration neutral strategy
  • Diversified across countries, issue type, credit rating, and currency
  • Manager review
  • Systematic review
  • Dedicated traders take advantage of mispricings, market dislocations, and other special situations

Strategy Risk

Credit & Interest: Debt securities are subject to various risks, the most prominent of which are credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt securities may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.

Foreign & Emerging Markets: Investing internationally, especially in emerging markets, involves additional risks such as currency, political, accounting, economic, and market risk.

High Yield-High Risk Fixed Income Securities: There is a greater level of credit risk and price volatility involved with high yield securities than investment grade securities.

Portfolio Team

David L. Albrycht, CFA
Industry Start Date: 1985
Daniel Senecal, CFA
Daniel Senecal, CFA
Industry Start Date: 1990
Stephen H. Hooker, CFA
Stephen H. Hooker, CFA
Industry Start Date: 1993

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