New fund offers diversification benefits through emerging market corporate and sovereign debt
New York, September 30, 2014 — TIAA-CREF, a leading financial services organization, today announced the launch of the TIAA-CREF Emerging Markets Debt Fund (TEDLX, TEDTX, TEDPX, TEDNX), an actively managed mutual fund focused on investing broadly in emerging market corporate and sovereign debt.
The TIAA-CREF Emerging Markets Debt Fund is an actively managed mutual fund that provides blended exposure to a range of emerging markets fixed-income securities including U.S dollar and local currency denominated sovereign and corporate bonds. The fund will leverage TIAA-CREF's extensive fixed income research and trading capabilities, using a combination of top-down macroeconomic and bottom-up credit analysis to identify and execute compelling investment opportunities. The fund will use the JP Morgan EMBI Global Diversified Index as its primary benchmark.
"With a history of generating attractive risk-adjusted returns, emerging market debt is an attractive tool for portfolio diversification providing non-correlated returns compared to US investment grade credit or high yield in particular," said Katherine Renfrew, lead portfolio manager, TIAA-CREF Emerging Markets Debt Fund. "We recommend a blended approach for investors as this allows the portfolio manager the flexibility to dynamically reposition the portfolio to deliver the best risk adjusted returns in emerging market debt with respect to sovereign, corporate, and local currency issuers in line with market conditions."
Renfrew, together with co-manager Anupam Damani, have more than four decades combined emerging markets investing experience. They are supported by a dedicated team of ten emerging markets research analysts and traders, as well as the broader 300-person strong TIAA-CREF global fixed-income and equity investment management organization. TIAA-CREF has invested internationally since 1972 and has invested in emerging market debt since the 1980s, with over $7 billion currently managed across the organization.
"Our centralized research process helps us evaluate relative value opportunities across Asia, Eastern Europe, the Middle East, Africa and Latin America," continued Renfrew. "We perform our own credit analysis and pay close attention to economic trends and other market events, then over- or under-weight countries, sectors and individual issuers we believe to be undervalued, overlooked or misunderstood."
The Emerging Markets Debt Fund's retail class shares are available for purchase through certain financial intermediaries or by contacting TIAA-CREF directly at 800-223-1200 or www.tiaa.org. Retirement and premier class shares are generally available for purchase through employee benefit plans or other types of savings plans or accounts such as TIAA-CREF IRAs. Institutional class shares are available for purchase directly from TIAA-CREF by certain eligible investors or through financial intermediaries.
TIAA-CREF (www.tiaa.org) is a national financial services organization with $613 billion in assets under management (as of 6.30.14) and is the leading provider of retirement services in the academic, research, medical and cultural fields.