Our emerging markets hard currency government bond strategy blends high-conviction macro calls with fundamental credit analysis. The investment process begins with our top-down analysis of the global economy, which is fine-tuned on a daily basis subject to market, economic and political changes.
We go on to identify countries with solid underlying credit fundamentals, including stable/improving fiscal positions, stable/improving political situations, comfortable central bank reserve levels, and improving current account positions. Based on this analysis, we construct a ‘best ideas’ portfolio from the strategy’s investment universe.
The strategy will be mainly invested in emerging market bonds issued by emerging market governments or quasi-government agencies denominated in hard currency. It may also take limited exposure to bonds issued by emerging market companies, as well as bonds denominated in emerging market local currencies.