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.”
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.
Watch the video and find out more as Hemant discusses the team’s investment process and philosophy.
Hemant explains the team’s investment strategy.
We believe the unique character of locally denominated debt in emerging markets calls for a different look at risk management and manager skill.
What lies in store for EM debt markets in 2021?
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. As a large portion of the strategy is invested in less developed countries, you should be prepared to accept significantly large fluctuations in value. The strategy invests in a limited number of holdings and is less diversified, and therefore this may result in large fluctuations in value. Investment in certain securities listed in China can involve significant regulatory constraints that may affect liquidity and/or investment performance.
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. Debt instruments are exposed to credit risk which is the ability of the borrower to repay the interest and capital on the redemption date. Investments in debt instruments which are of lower credit quality may result in large fluctuations in the value. Investment in certain securities listed in China can involve significant regulatory constraints that may affect liquidity and/or investment performance. The strategy may invest in distressed securities which carry a significant risk of capital loss.
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.
This document is marketing material and is not intended as a recommendation to invest in 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. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.
