EMERGING MARKETS CREDIT HERO

GIB Emerging Markets Credit Strategy

Credit portfolios give investors exposure to interest rates and spreads. Based on their historic ability to provide capital preservation, diversification and yield, they are the mainstay of most investors’ portfolios.

Credit markets are evolving, driven by global economic shifts and changing market behaviour. For a credit portfolio to continue to deliver its key benefits, investors may need to look beyond traditional credit markets. Emerging market corporate debt has now become an established segment of the credit universe for long-term investors.

We build emerging market credit portfolios designed to deliver attractive risk-adjusted returns tailored to our clients’ individual investment objectives and risk parameters.

Characteristics

1

Bespoke portfolios tailored to meet clients’ risk parameters, return requirements and ethical considerations

2

Large and fast-growing emerging markets credit universe, offering scope for globally diversified portfolios

3

Variety of economies at different stages of development and uncorrelated interest rate cycles, creating opportunity for security selection

4

Complex and often under-researched investment arena with common misperceptions of risk and a wide dispersion of returns – an opportunity for investors with a strong credit research ability

Approach

A robust and repeatable process is key to delivering consistent risk-adjusted returns. Our approach is focused on careful fundamental analysis. We combine top-down and bottom-up research to uncover value opportunities for each client’s portfolio. We focus on sustainability credentials and engaging with issuers to encourage improvements.

Risks and returns

Understanding risk is the core of our approach – to identify the right risks to deliver each client’s performance objective, as well as the investments to avoid. Each investment in a portfolio is selected with a view to maximise upside potential and limit downside risks.

Balance

Our clients’ portfolios are invested across emerging markets hard currency sovereign, quasi-sovereign and corporate debt, to capture different drivers of returns. The importance of these different investments is to help generate returns in unstable markets, in ways that are independent of the general market movement.

Credit is in our DNA as a business. It shapes our fundamental approach to building portfolios tailored to our clients’ individual needs

To discuss how this strategy can fit within your overall portfolio, please contact our solutions team

T: +44 (0) 20 7259 3149
E: solutions@gibam.com