Emerging market corporate debt
A 'best ideas' portfolio investing in emerging market corporate debt designed to capture the structural opportunities of investing in the asset class. This strategy has multiple sources of potential alpha that include top-down country allocation, security selection through our rigorous bottom-up credit analysis, and liquidity management.
Access to a source of attractive investment opportunities: emerging markets continue to benefit from positive demographic trends and strong growth fundamentals.
Emerging market corporate debt: emerging market corporate debt is a rapidly growing and highly diverse area of the asset class (now close to $2trn in size1) that benefits particularly from changing consumption trends within emerging markets. Over 60% of the emerging market corporate debt market is investment grade-rated and the diversity within the asset class can provide significant alpha opportunities.
Opportunistic total return style: the investment team manages credit, duration and currency exposure through moderately concentrated positions in order to target high risk-adjusted returns.
Focus on bottom-up security selection: the strategy draws on the expertise of Insight's extensive team of global sector credit analysts, who review issuers in a global context, including emerging markets.
Flexibility: there is flexibility to invest in bonds and similar debt investments across the credit spectrum, making a dynamic allocation between investment grade and high yield through the market cycle, as well as selecting optimal instruments in terms maturity, currency and size of holding to capture structual upside in emerging market corporate debt
Experienced team: our portfolio managers have experience of investing across the spectrum of the asset class through different market cycles and major market events.
As of June 30, 2019. Assets under management (AUM) are represented by the value of cash securities and other economic exposures, and are calculated on a gross notional basis.*
Fund and strategy profiles
Fixed income snapshot desk views
How can investors navigate a global economy experiencing slowing growth and a US/China trade war?
US pension market: a statistical and qualitative review of Q2 2019 and investment outlook
The global trade war has erupted once again, as the US escalated its dispute with China and Mexican President Obrador was faced with an offer he couldn’t refuse.
US pension market: a statistical and qualitative review of Q1 2019 and investment outlook
After the tumultuous end to 2018, a year in which an unusually broad range of asset classes recorded negative returns, policymakers appear to be in the process of reassessing their position.
US pension market: Review of trends in US pension and financial markets in Q4 2018 and outlook
Pension Funded Status: For many, the gains realized through most of 2018 were wiped out over December with levels flat or slightly down for the year
Sovereigns and sustainability
Fixed income investors are sharpening their focus on countries' sustainability risks. We believe effective sovereign debt investment requires in-depth analysis of ESG matters, and our proprietary model aims to help us better understand ESG risks at the country level across our portfolios.
US pension market: Review of trends in US pension and financial markets in Q3 2018 and outlook
Pension fund liability hedging demand for stripped Treasury bonds continues to run at elevated levels, boosted by improving funded levels and a surge in contributions before the September 15 deadline for higher tax deduction savings.
*Insight North America (INA) is part of “Insight” or “Insight Investment”, the corporate brand for certain asset management companies operated by Insight Investment Management Limited including, among others, Insight Investment Management (Global) Limited and Insight Investment International Limited. Advisory services referenced herein are available in the US only through INA. Figures shown in USD. FX rates as per WM Reuters 4pm spot rates.
Includes employees of Insight North America LLC (INA) and its affiliates, which provide asset management services as part of Insight, the corporate brand for certain companies operated by Insight Investment Management Limited (IIML).
Please note: the value of investments and any income from them will fluctuate and is not guaranteed (this may be partly due to exchange rate fluctuations). Investors may not get back the full amount invested. Past performance is not a guide to future performance.
Insight North America LLC (INA) is a registered investment adviser under the Investment Advisers Act of 1940 and regulated by the US Securities and Exchange Commission. INA is part of “Insight” or “Insight Investment”, the corporate brand for certain asset management companies operated by Insight Investment Management Limited including, among others, Insight Investment Management (Global) Limited and Insight Investment International Limited. Insight’s assets under management are represented by the value of cash securities and other economic exposures, and are calculated on a gross notional basis. Advisory services referenced herein are available in the US only through INA.
The views herein represent the opinions of Insight and are subject to change based on subsequent developments. They are not intended as investment advice or to predict or depict the performance of any investment. The material contained herein is not intended to provide, and should not be relied on for, investment, accounting or legal tax advice. Further, this material does not constitute a recommendation to buy, sell or hold any security. No offer or solicitation for the sale of any security or financial instrument is made hereby.