GLG Emerging Markets Debt
The GLG Emerging Markets Debt strategies provide access to the complex universe of Emerging Markets debt through three distinct investment opportunities, all of which are managed by a seasoned investment team:
Investment Opportunities:
- Emerging Markets Local Currency Rates
- Emerging Markets Hard Currency Debt
- Emerging Markets Debt Total Return
The team believes in three fundamental tenets:
- Emerging Markets debt and currency markets are inefficient
- Inefficiencies are a result of the incorrect understanding and pricing of risk
- An approach to investing that adds value by combining deep fundamental research with top down and quantitative screening
Approach
In summary, the team's key differentiators are:
- Guillermo Ossés, Head of Emerging Markets Debt Strategies, has broad experience across all aspects of emerging markets debt investing including credit analysis, currency and rates trading
- Portfolio managers who are specialists in their own areas, which creates diversification and fosters responsiveness
- The application of a strong valuation discipline to asses fundamental views and express them efficiently
- Strong risk management discipline helps to maximise information ratio and optimise model portfolio
Fundamental analysis and relative valuation are at the core of the investment process which is further enhanced by top-down views.
The investment process consists of four broad stages:
- Bottom-up analysis - Based on proprietary models that aim to construct rankings of country credits, currencies and rates based on relative attractiveness and perform valuation analysis to determine if asset prices reflect the team's views on relative attractiveness. Much of the security selection for each country will be focused on identifying the richest / cheapest instruments across the curve.
- Top down analysis and consideration of positioning - Any fundamental views are reconciled with top down views prior to implementation. In addition to macro themes and global scenarios, the team consider the degree to which there is crowding in the investment identified via bottom up analysis.
- Model portfolio construction - Construction of the model portfolio is built around targets and available securities. The team uses the same process for all the portfolios with certain tweaks for each strategy and in particular the Total Return as there is more shorting involved.
- Stress testing - Testing is conducted to ensure that the portfolios meet the tracking error, volatility and drawdown targets applicable. The sensitivity of each portfolio to different risk factors is assessed for consistency with the general macro view that the team has developed as part of the top down process.
| Approach | Long |
| Asset Class | Fixed Income |
| Geographic Focus | Emerging Markets |
| Benchmark | |
| EM Local Currency Rates | JPM GBI-EM Global Diversified |
| EM Hard Currency Debt | JPM EMBI Global |
| EM Debt Total Return | NA |
The indices listed are appropriate benchmarks for the Strategies.
Related content
Investment Solutions
Man offers a comprehensive suite of investment solutions and formats that can be tailored and optimised to meet specific client needs.
Our investment solutions offer optionality including: liquidity, control, investment restrictions, investor customisations and transparency.
UCITS
Alternative investment funds
US 40 ACT
Regional funds
Separate accounts
Advisory mandates
Managed accounts
Access to investment products and mandate solutions are subject applicable laws and regulations including selling restrictions and licensing requirements. Investment solutions listed above may not be compatible for all investment strategies and may be subject to minimum subscription requirements. Regional Funds: In additions to UCITS and AIFs registered across the EEA, a number of investment strategies are available in vehicles registered in Chile, Netherlands, Hong Kong, Japan, Singapore, South Korea and Switzerland.
Considerations
One should carefully consider the risks associated with investing, whether the strategy suits your investment requirements and whether you have sufficient resources to bear any losses which may result from an investment:
Investment Objective Risk - There is no guarantee that the Strategy will achieve its investment objective.
Market Risk - The Strategy is subject to normal market fluctuations and the risks associated with investing in international securities markets and therefore the value of your investment and the income from it may rise as well as fall and you may not get back the amount originally invested.
Counterparty Risk - The Strategy will be exposed to credit risk on counterparties with which it trades in relation to on-exchange traded instruments such as futures and options and where applicable, ‘over-the- counter’("OTC","non-exchange") transactions. OTC instruments may also be less liquid and are not afforded the same protections that may apply to participants trading instruments on an organised exchange.
Currency Risk - The value of investments designated in another currency may rise and fall due to exchange rate fluctuations. Adverse movements in currency exchange rates may result in a decrease in return and a loss of capital. It may not be possible or practicable to successfully hedge against the currency risk exposure in all circumstances.
Liquidity Risk - The Strategy may make investments or hold trading positions in markets that are volatile and which may become illiquid. Timely and cost efficient sale of trading positions can be impaired by decreased trading volume and/or increased price volatility..
Concentration Risk - The Strategy invests in a limited number of investments may be held which can increase the volatility of performance.
Financial Derivatives - The Strategy will invest financial derivative instruments ("FDI") (instruments whose prices are dependent on one or more underlying asset) to achieve its investment objective. The use of FDI involves additional risks such as high sensitivity to price movements of the asset on which it is based. The extensive use of FDI may significantly multiply the gains or losses.
Leverage - The Strategy's use of FDI may result in increased leverage which may lead to significant losses.
Emerging Markets - The Strategy may invest a significant proportion of its assets in securities with exposure to emerging markets which involve additional risks relating to matters such as the illiquidity of securities and the potentially volatile nature of markets not typically associated with investing in other more established economies or markets.
Non-Investment Grade Securities - The Strategy may invest a significant proportion of its assets in non-investment grade securities (such as “high yield” securities) are considered higher risk investments that may cause income and principal losses for the Strategy. They are instruments which credit agencies have given a rating which indicates a higher risk of default. The market values for high yield bonds and other instruments tend to be volatile and they are less liquid than investment grade securities.
You are now exiting our website
Please be aware that you are now exiting the Man Group website. Links to our social media pages are provided only as a reference and courtesy to our users. Man Group has no control over such pages, does not recommend or endorse any opinions or non-Man Group related information or content of such sites and makes no warranties as to their content. Man Group assumes no liability for non Man Group related information contained in social media pages. Please note that the social media sites may have different terms of use, privacy and/or security policy from Man Group.