Please join Steve Ellis in this regular webcast as he looks to explain Fidelity’s Emerging Market Debt team’s views on why, in a low yield world and despite soft fundamentals, emerging market debt continues to offer an attractive income for an acceptable level of risk. The asset class has enjoyed a strong start to the year, with the supply/demand imbalance created by inflows and limited debt issuance leading yields to come in. This has resulted in an approximate 4% return for hard currency debt over the year to date. Local currency sovereign debt currently yields around 6.4%, US dollar-denominated sovereign debt yields 5.7% and US dollar-denominated corporates yield 5.2%. This compares very favorably to yields on offer from various asset classes in the developing world; particularly when considering a significant proportion of this universe is rated investment grade.
Emerging markets can throw up opportunities where one might least expect to find them. Please join Steve Ellis in discovering where the market opportunities lie.
Insight Investment’s Head of Emerging Market Fixed Income, Colm McDonagh, discusses the real risks faced by investors in developed fixed income markets compared to emerging markets and addresses whether investors are being adequately compensated for their exposure in the current environment.Read more >
Please join us for our quarterly Emerging Markets Debt strategy update hosted by Phil Yuhn, Senior Portfolio Manager and Olga Yangol, Senior Product Specialist,Read more >
The last quarter of 2014 saw Emerging Market Debt being buffeted by rapidly evolving news headlines. Falls in the global oil price, slides in the Russian economy and continued speculation over potential Venezuelan and Ukrainian debt defaults all added up as a headwind to EM debt investor sentiment. News headlines surrounding EM drove international investor positioning to recent lows which saw valuations overshoot the team’s fundamental indicators. Steve Ellis looks to discuss with investors on why his team have reversed their fundamental underweight position and become selectively bullish on Emerging Market Debt. Steve will also look to provide his team’s thoughts on why the slide in the global energy markets will likely help support global growth over the medium term.
Finally, much of the news headlines have not all emanated from the EM world. After the ECB announcement of QE and the Swiss National Bank (SNB) cutting rates into negative territory, other Developed Market (DM) economies including Sweden, Denmark and Canada followed suit with dovish rate cuts of their own. Driven by these negative global interest rate wars, Steve looks to provide his thoughts on why this policy action creates further room for the continuation of the longer term “search for yield” theme and why Emerging Market Debt is primed to benefit from this ongoing trend.
Now a strategic asset class, Emerging Market Corporate debt rivals the US High Yield market in size. The outlook for the asset class is bright as issuance now currently and is expected to grow over the foreseeable future, outpacing EM external USD sovereign debt.
Eric Wong – Lead portfolio manager of the FF-Emerging Market Corporate Debt Fund, looks to guide investors on the Emerging Market Debt opportunity and explain why the yield and rating of this exciting new opportunity is so attractive. Eric will look to also elaborate on “Why?” and “How?” the EM Corporate have navigated the recent period of volatility, delivering superior risk adjusted rewards to investors who diversify their EM external debt holdings.
On this webcast, Eric will look to explain how FF - Emerging Market Corporate Debt Fund has outperformed both its investment index and market peers. Including the FF-EM Corporate Debt Fund, the Fidelity EM debt franchise has exhibited a strong track record across its funds reflecting the strong investment philosophy of the team. High quality and consistent outperformance can be delivered through a repeatable and robust investment process, supported by relative value and security selection which is driven from intensive bottom-up credit research.