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Emerging Markets

Beyond benchmarks at PFA and NZSuper

Emerging markets debt is typically seen as an asset class in which investors can gain alpha through using active and usually external managers that charge for their niche access to segments of the market and on-the-ground local expertise. However, two large institutional investors – Danish pension fund PFA and New Zealand Superannuation Fund – are […]
Emerging Markets

The rise of emerging markets-debt indexes

In the 1990s emerging markets-debt indexes were limited to external US-dollar-denominated sovereign debt but as interest in the asset class has increased so has the breadth and depth of available indexes. The JP Morgan family of emerging market-bond indexes contains some of the most widely used by investors. In the 2000s JP Morgan expanded its […]
Emerging Markets

Consultants advocate active EMD management

Consultants are recommending investors have as much as 10 per cent of their fixed-income portfolio in emerging markets debt with endowments, public pension funds and even some corporate clients using liability driven investment strategies showing increasing interest in the asset class. Top1000funds.com spoke to consultants from Callan Associates, Hewitt EnnisKnupp, Cambridge Associates and Russell Investments […]
Emerging Markets

AP2 extends metrics to emerging markets debt

Swedish buffer fund AP2 is investigating a move from traditional market cap-weighted benchmarks for its fixed-income portfolio to using other metrics, such as fiscal sustainability or GDP weights, the fund’s chief investment strategist Tomas Franzen says. The 216.6-billion Swedish krona ($30.9 billion) fund has more than 36 per cent of its portfolio in investment-grade fixed […]
Emerging Markets

Past volatility making way for future steady yields

The role of emerging markets debt is evolving from a return-enhancer to providing some buffer against volatile markets. Emerging markets debt has been one of the best performing asset classes in the last decade but experts say those spectacular returns may be a thing of the past. There are signs emerging markets debt is becoming […]
Emerging Markets

Investors look to broaden debt exposures

At a time of increasing risk and diminishing returns from traditional government bond investments, a growing number of large investors are beginning to cast their eyes toward emerging markets as a way to broaden their fixed-income portfolios. Paul O’Brien, head of fixed-income strategy at The Abu Dhabi Investment Authority (ADIA), considered by many to be […]
Emerging Markets

Strong investor interest in corporate debt

Emerging markets corporate debt is taking on a bigger role in fixed-income portfolios with attractive yields and strong underlying fundamentals relative to both sovereign and developed-market high-yield debt attracting investors. While still beholden to sell-offs in risk assets, emerging markets corporate debt has seen strong inflows from institutional investors driven by returns that have outperformed […]
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