Given the divergent trend of market returns of the various emerging market debt sub-asset classes over the last few years, the strategy offers an investment solution which can actively asset allocate across these sectors, thereby providing a valuable source of return potential as well as helping to reduce volatility.
Strategy overview
- Seeks to offer attractive yield levels and a substantial spread premium relative to developed market credits.
- Designed to offer diversified exposure to the broadest range of US dollar denominated sovereign and corporate debt
- Leverages the experience across both investment teams.
Our approach
Investment strategy
- Long-only exposure to the broad spectrum of emerging market sovereign and corporate credit; pure hard currency focus with no emerging market local currency volatility
- A holistic emerging market debt portfolio jointly managed by emerging market sovereign and corporate teams
- High conviction approach comprising established ideas across the emerging market sovereign and emerging market corporate universe
- Bottom-up, fundamental, research-driven approach at the country and company level, albeit with significant macro input
- Tactical asset allocation between sovereign and corporates depending on market directionality, is a source of additional value
- The BlueBay Fixed Income Team believes that taking into account environmental, social and governance (ESG) factors is an important aspect of the investment process.
Emerging market debt experience
- Our experience covers the full spectrum of emerging market sub-asset classes – from traditional benchmarked single sector strategies to unconstrained strategies and hedge funds. Our diversified investor base entrusts us with managing assets incorporating standardised as well as customised, client-specific requirements.
- We have always endeavored to be at the forefront of development and innovation in the market as the asset class has evolved. Our AUM has grown substantially as the asset class matured - a strong reflection of our capability and our offerings over the past two decades
- We are an active manager, and our philosophy is rooted in the belief that EM remains an inherently inefficient asset class – there are price discrepancies which can be exploited in meaningful size to pursue strong risk-adjusted returns.
- Our experience in multiple products demonstrates an ability and keen willingness to seek returns through superior and meticulous research and strong risk management with a focus on capital preservation.