Our dedicated emerging markets team invests primarily in fixed income securities of issuers domiciled in developing countries on a worldwide basis. Investments may include:
- Sovereign, agency and corporate bonds
- Bank loans
- Convertible securities
The cornerstone of our emerging markets investment approach is an independent research process, combined with focused analysis of issuer credit and security valuation. Additionally, we apply thoughtful risk management disciplines to our portfolio construction process.
- The element that fully connects the conventional credit evaluation process to the portfolio is what we've called the "scenario testing" step. This testing gives us insight to address the "what if" questions.
- By evaluating each credit and security in the context of discrete key variables, we can make explicit assumptions about portfolio performance that:
- Help us to control risk
- Help us to analyze the sources of performance
- Along with traditional performance evaluation, we can use the scenario process to keep portfolios appropriately balanced.