skip to global search (press enter).

skip to funds type (press enter).

skip to footer (press enter).

We are using cookies to give you the best experience on our site. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. By continuing to use our website without changing the settings, you are agreeing to our use of cookies. Find out more here.

Find out more here.

EM debt: The rise of unconstrained

Looking for optimal risk-adjusted returns? Why breaking the illusion of discipline with the use of unconstrained strategies could help to unlock the vast opportunity set in emerging market debt.

Emerging market debt (EMD) has caught investors’ attention thanks to its potential for high yields alongside attractive portfolio diversification benefits.

But as investors know only too well, upside comes with the often-unwelcome counterbalance of downside.

For EMD, that typically comes in the shape of periodic volatility within the asset class, with significant dispersion in the return profile.

As the global economy shifts from a monetary easing to a monetary tightening environment, appetite for the potential benefits of EMD seems to be on the rise, sparking debate around the most effective investment strategies for capturing upside.

Traditional long-only approaches are being challenged by a proliferation of absolute return, total return and unconstrained approaches.

While any strategy should be closely scrutinised before investing, we believe unconstrained approaches can open up a portfolio to a wider opportunity set, offering a potential performance edge in the EMD universe.

Download the PDF

To read and download a copy of this in German, click here.

To read and download a copy of this in Spanish, click here.