April 2021 / VIDEO
EM Corporate Bond: how we invest
Our investment process is analyst led. They are the heart of the organisation and the output of their bottom-up work is what drives the investment process. That said, when constructing portfolios there are three variables I look at to supplement their bottom-up work.
- The first is governance. We have a four-decade history of looking at EM governance, but also partnering with our in-house responsible investing team on ESG parameters.
- Second would be liquidity, and in working with our traders to measure every transaction on a post transaction cost basis, we want to be sure we're paid for the relative illiquidity of EM debt.
- Third and final would be the macro factors. We know in some countries the macro will outweigh the micro, and we need to size our risk accordingly for that conviction.
So it's the combination of that bottom-up analyst-driven process and a consistent portfolio construction process that leads to the end output.
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April 2021 / MULTI-ASSET SOLUTIONS
Samy Muaddi is the head of Emerging Markets in the Fixed Income Division. He is the portfolio manager of the Emerging Markets Bond Strategy and co-manages the Emerging Markets Corporate Bond and Global High Income Bond Strategies. He is a member of the Investment Advisory Committees of the International Funds, Inc., Global Funds, Inc., Short-Term Bond Fund, Corporate Income Fund, Global Multi-Sector Bond Fund, and New Income Fund. He is a member of the Fixed Income Steering Committee and previously managed the firm’s Asia Credit Bond Strategy from its inception until 2020. Samy also is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., and T. Rowe Price International Ltd.
