As part of its fund selector analysis feature on emerging market debt, Morningstar has identified the newest funds to watch.
The Morgan Stanley Emerging Markets Fixed Income Opportunities Fund was launched in August 2015 and invests across the spectrum of opportunities in emerging markets debt, spanning external, domestic and corporate. At the end of October 2016, the portfolio had 57% in sovereign debt, 10% in quasi-sovereign debt and the rest in corporate debt. The key risk takers are team head Eric Baurmeister, head of sovereign research Jens Nystedt, head of emerging markets corporate debt Warren Mar, and portfolio manager Sahil Tandon.
The high-conviction Ashmore Emerging Markets Short Duration Bond Fund, launched in June 2014, invests primarily in hard currency EM corporate debt, although quasi-sovereigns and sovereigns are also part of the set. The team seeks to construct a portfolio that generates a high level of income but mitigates interest rate risk.
The Babson Capital EM Sovereign Debt Fund invests primarily in hard currency emerging markets sovereign debt. Ricardo Adrogue, head of EM debt at Babson, is lead manager. The team focuses on macro analysis and split-up country coverage. It combines proprietary quantitative models and fundamental analysis tools to analyse country-by-country economic cycles.
