Emerging Markets Debt

Capital National Alliance offers Capital International’s investment management capabilities in emerging markets debt.

Clients can access Capital International’s emerging markets debt capabilities via a separate account. Eligibility criteria apply.

Product Profile – Emerging Markets Debt

Investment objective
To outperform the JPMorgan Emerging Markets Bond Index Global over the long term by investing in a portfolio of sovereign and corporate fixed-income securities issued in emerging markets.

 

Invests in
Emerging Markets Debt
Sovereign
Corporate
Local currency

 

Investment strategy
Capital International, Inc.’s (Capital International) emerging markets debt portfolios are designed primarily for two purposes:
  • To supplement traditional core fixed-income investments with the total return premiums and diversification benefits offered by investments in sovereign and corporate debt in emerging markets.
  • As a supplement to emerging markets equity portfolios, in order to broaden and diversify overall exposure to emerging markets.
Returns for Capital International’s emerging markets debt portfolios are pursued almost exclusively through security selection. Duration characteristics and allocations between countries and regions are the results of security selection decisions. Local currency issues also incorporate extensive currency research which forms an important element in security selection. Managing emerging markets debt securities requires a substantial research commitment. Capital International has extensive global research capabilities, and leverages those capabilities to actively manage substantial fixed-income assets. Capital International’s intensive bottom-up research directly benefits security selection as well as top-down analysis. Capital International has significant experience managing emerging markets debt securities, having done so since 1989 as part of a broad fixed-income capability begun in 1973. Capital International is also one of the world’s largest managers of emerging markets assets and launched the first emerging markets equity fund in 1986.

More information on the Emerging Markets Debt

Further information is available to Australian and New Zealand wholesale investors. Please feel free to contact a member of the Capital National Alliance team