Emerging Market Debt Q&A
We put some of our funds investors’ question to Brett Diment, Head of Emerging Market Debt.
What experience do you have in emerging markets debt?
We have considerable experience in emerging markets debt with our team having an average of nine years investment experience. Members of the team have been
researching the asset class since 1993. The depth of our experience enhances our ability to interpret ongoing country developments and also allows us to make rapid decisions
and implement trades quickly.
What is your process for investing in emerging markets debt?
We focus on the entire emerging market debt universe to maximise the return potential of our funds. We conduct
comprehensive country research, set in the context of global economic developments, which forms the foundation of our investment process. We look at factors such as key macroeconomic variables, the political environment, fiscal and monetary policy developments and major risk. This is
coupled with analysis of market technicals such as the nature of instruments, relative value, liquidity and demand and supply imbalances.
How many countries do you research for this product?
We research over 40 countries and our team conducts over 100 meetings per annum with senior policy makers. We also meet with local corporates and banks, as well as local investors, independent economists and political analysts. This allows us to better gauge developments within each country.
What importance do you place in the benchmark?
We are aware of the benchmark but it does
not drive our investment decisions. We are comfortable taking positions outside the benchmark and actively do so where we see opportunities. Our own research is key to our investment decisions, therefore we are not constrained by what is in the benchmark. We are cognisant of the benchmark however, in that we monitor any significant deviations to ensure that we control beta risk in our portfolios.
What do you see as your key competitive advantage?
I believe our key competitive advantage is that we are an independent team and we carry out our own research which
drives our investment decision making process. We do not follow consensus or the benchmark when we invest as
we believe our process will deliver the optimal portfolio and attractive returns for our investors. Being unconstrained
by a benchmark also allows us to add value wherever we see it across the entire emerging markets universe. In addition to this, we have an experienced team, a strong global resource and a tried and tested investment process which I believe puts us at an advantage over our
competitors.
