An Unconstrained Approach Offers Unparalleled Opportunities

Emerging Markets Debt

June 2018: Market Perspective

We believe the reappearance of volatility may constrain performance for investors using a traditional benchmark approach to emerging markets debt investing.

Emerging market debt (EMD) is a large, diverse, and complex asset class with divergent return drivers, risks, and credit profiles that behave differently in various markets. But the performance of the popular EMD benchmarks does not typically reflect this diversity.

Tracking those benchmarks also may inhibit performance potential, particularly as volatility returns to the financial markets. We believe an unconstrained approach will deliver better risk-adjusted performance than a traditional index-based investment strategy.

Joyce Huang

Joyce Huang, CFA

Client Portfolio Manager

Global Fixed Income

 

An Unconstrained Approach Offers Unparalleled Opportunities

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