EM Corporate Bond: how we invest
November 2019
Samy Muaddi
, Head of Emerging Markets
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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201910-992347
RELATED FUND
SICAV
Class I
ISIN LU0596126465
A diversified portfolio of typically 100 to 150 securities in mainly corporate bonds from emerging market issuers. We would expect the bulk of value added to come from security selection, with the rest from sector selection. We employ a long-term investment horizon, combined with low portfolio turnover. The fund is categorised as Article 8 under Sustainable Finance Disclosure Regulation (SFDR).
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