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Investment Philosophy – Emerging Markets Corporate Debt

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The investment process starts by screening out countries which are deteriorating rapidly or have a very negative business environment. We evaluate countries on six economic factors and six political/institutional factors. The latter six include indices for corruption, rule of law, regulatory quality, government, effectiveness, voice & accountability and political stability.

Secondly we use a number of tools to analyse the risk/reward of various segments of the market: countries, sectors, rating categories etc. This leads us to avoid, underweight or overweight certain segments of the market.

Once the team are satisfied that the country risk is acceptable, they will look at the individual bond issuers.

We have a strong preference for companies, which fulfil at least one of these three criteria:

  • Strong strategic positioning market or likely support from government
  • Strong and stable cash flow generation
  • Good corporate governance

 We meet a long list of companies every year, and find it important to be able to ask questions directly to the management of the companies we have invested in.


» Read more about Emerging Markets Corporate Debt

Last updated: 03.31.2014