The sustainable investor for a changing world

Emerging market fixed income strategy

Key features

A high-conviction, contrarian approach with ESG integration

Diversification across a broad range of countries, sectors and issuers

An experienced team with access to 13 local emerging market investment centres

Investment philosophy 

First, we consider all trades in the context of two assumptions: investors have perfect information; and the recent environment of illiquidity should be viewed as permanent.

Second, four key principles guide how we invest:

  • We determine inflection points in the market; we are not momentum-driven traders
  • We avoid crowded positions and favour trades with positive technicals  
  • We identify trades that are not well understood or that are mispriced by markets to unlock compelling, risk-adjusted return outcomes
  • We actively invest across the broad emerging-market universe, including in smaller and less well-researched markets

Investment process

Our Emerging Market Fixed Income strategy follows a comprehensive five-step process:  

  • Bond underlay: the core component of the portfolio where we replicate benchmark risk factors (and thereby beta)
  • Alpha overlay: alpha trades are taken from the model portfolios created by our alpha specialists and implemented in the most liquid form available
  • Macro risk management: set risk targets based on the macro environment
  • Alpha trade ESG tilting: rank sovereign and corporate bonds using dedicated ESG processes
  • Portfolio construction and risk management 

Team and resources

Our Emerging Market Fixed Income team is based in London, Hong Kong, Singapore and Kuala Lumpur. Jean-Charles Sambor, who has more than 17 years of industry experience, leads the team.  

The team consists of portfolio managers and research analysts with expertise across different sectors and countries. They benefit from access to 13 local emerging market investment centres, as well as our global trading and risk management platform, Sustainability Centre, Quantitative Research Group and Macro Research team.

Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the strategies described being in risk of capital loss. There is no guarantee that the performance objective will be achieved.