Emerging Markets Debt Opportunities

Strategy description

EMD Opportunities invests across the full range of emerging market debt (EMD) sub-asset classes and instruments, resulting in exposure to hard and local currency denominated sovereign, quasi-sovereign and corporate debt, and emerging market currencies. The combination of a strategic asset allocation and a tactical overlay forms a unique investment approach in the dedicated emerging market debt investor space.

Objective

Our objective is to outperform the customized Strategic benchmark (35% JPM GBI-EM, 25% JPM ELMI+, 25% EMBI GD and 15% CEMBI D) on a gross basis over a three year period with a target information ratio of 0.5.

Key information

Investment Universe Debt instruments denominated in hard and local currencies, issued by issuers from low and middle income developing countries.
Investment Instruments
  • Hard and local currency bonds issued by emerging markets central governments, regional entities and municipalities 
  • Hard currency debt issued by corporations in emerging markets 
  • FX related instruments 
  • Inflation-linked instruments issued by emerging markets governments and the like
Volatility Comparable to that of underlying funds, historically between 5% and 15%
Base Currency US dollar (EUR shares classes are available)
Currency Hedging Implicit USD exposure is hedged for EUR based investors
Diversification Portfolio diversification is provided at regional and individual security level
Derivatives Strict guidelines and comprehensive risk management procedures govern the usage of derivatives


NN Investment Partners

+44 (0) 207 382 1332

Key elements

  • Long term track record
  • We are a key player in emerging markets
  • Excellent performance through consistency
  • Risk management

Documents

Latest insights

Our investment process is characterized by discipline, transparency and efficiency. In the process, we focus on identifying value by analysing sources of alpha in three steps

  • Top-down asset class review
    Strategic Asset Allocation (SAA) Aims to add value by establishing the optimal long term allocation over the full EMD asset class by taking into account the growth trends , secular rotation of the sub asset classes.
  • Tactical Asset Allocation (TAA)
    Aims to add value to the overall performance by temporarily deviating from the strategic allocation, emphasizing one sub asset class over another but also allowing for a temporary allocation to cash.
  • Bottom-up selection
    In each of the EMD sub-asset classes, we seek to outperform the respective benchmark by using our security selection skills and focusing on specific alpha drivers for that sub-asset class.

NN Investment Partners

+44 (0) 207 382 1332

Key elements

  • Long term track record
  • We are a key player in emerging markets
  • Excellent performance through consistency
  • Risk management

Documents

Latest insights

Marcelo Assalin

Marcelo Assalin

Head of Emerging Markets Debt

Experience since 1996

NN Investment Partners

+44 (0) 207 382 1332

Key elements

  • Long term track record
  • We are a key player in emerging markets
  • Excellent performance through consistency
  • Risk management

Documents

Latest insights