Emerging markets debt

Blackfriars Asset Management's emerging market debt team seeks to add value primarily through country allocation with additional return from instrument selection.

We believe that the ability to identify mis-pricing of risk in emerging market sovereign debt offers the opportunity to enhance both absolute and relative returns to investors. We aim to add value by capturing the movement in yields and spreads whilst providing an attractive total return for our clients.

Driven by the in-depth analysis of the potential impact of macro economic factors and trends on the future performance of a country's debt instruments. We monitor and evaluate the economic data for each country and a scoresheet is created to provide a framework for further analysis of spreads against fair value for the sovereign debt. This approach is complemented by a country model.

Instrument selection within the portfolio is implemented to enhance return and to manage risk. Portfolios will generally be constructed from hard-currency sovereign bonds, but we can also invest in local currency bonds, corporate bonds (usually government-owned companies or agencies) as well as credit default swaps.

Risk is managed by targeting spread duration through our country allocation and instrument selection positions.

Please note that our strategies and funds may not be available to all investor types in all geographies.

Past performance is not a guide to, or indicative of, future results.