Thinking about emerging market bonds

Thinking about investing in emerging market bonds?

Hemant Baijal, Head of Multi-Sector Portfolio Management, Global Debt Senior Portfolio Manager

The Invesco Emerging Markets Local Debt Strategy, which recently reached USD1.07 billion in assets under management (January 2021), is managed by our highly experienced Global Debt Team, who have a long and successful history of investing in international fixed income markets. 

Hemant Baijal, Fund Manager, says: “This strategy is a global macro discretionary strategy and we strongly believe it is essential to understand global conditions to invest in emerging markets. In order to generate alpha for our clients, we look at each country’s nuances individually, to determine what we believe will be the growth path over the nine-18 months.”

Wim Vandenhoeck, Senior Portfolio Manager, says: “Our goal is to maximise alpha generation with mitigated downside risk to our investors in an asset class that currently enjoys attractive income and capital appreciation opportunities.”

  • The value of investments and any income will fluctuate (this may partly be the result of exchange-rate fluctuations) and investors may not get back the full amount invested. Debt instruments are exposed to credit risk which is the ability of the borrower to repay the interest and capital on the redemption date.
    Changes in interest rates will result in fluctuations in the value of the strategy.
    The strategy uses derivatives (complex instruments) for investment purposes, which may result in the strategy being significantly leveraged and may result in large fluctuations in the value of the strategy.
    As a large portion of the strategy is invested in less developed countries, you should be prepared to accept significantly large fluctuations in the value of the strategy.
    The strategy may invest in certain securities listed in China which can involve significant regulatory constraints that may affect the liquidity and/or the investment performance of the strategy.
    Investments in debt instruments which are of lower credit quality may result in large fluctuations in the value of the strategy.
    The strategy may invest in distressed securities which carry a significant risk of capital loss. 

In a couple of short video clips, Hemant Baijal provides insight into the investment process and philosophy as well as an overview on strategy.

In the featured articles Wim Vandenhoeck takes a closer look at how he manages asymmetrical risk in emerging markets local debt, and, after a turbulent period for financial markets, Hemant gives his view on where he and his team see the best investment opportunities going forward.

Investment process & philosophy
Investment process

Video Investment process and philosophy

Watch the video and find out more as Hemant discusses the team’s investment process and philosophy.

Investment process & philosophy
Investment process

Video Investment strategy

Hemant explains the team’s investment strategy.

Featured articles

  • This is marketing material and not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.
    Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.
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