The Emerging Markets Debt investment strategy seeks to outperform the JPMorgan Emerging Markets Bond Index Global Diversified (EMBI® GD) by purchasing corporate bonds and sovereign debt securities in emerging market economies.
The portfolio management team evaluates issuers, countries, and the larger economic environment when selecting debt securities in emerging markets with superior prospects for favorable long-term returns. Top-down macro-economic analysis evaluates which countries offer the best risk/return characteristics while the strategy’s bottom-up yield curve and fundamental analysis seeks to identify those issuers/securities that offer the best relative value. The team benefits from the insights and in-depth analysis of the TIAA organization’s global fixed income and global equity research teams.
The portfolio management team, comprising regional specialists/traders, is focused on investing in undervalued, higher-quality bonds in economically stable countries. In an effort to manage risk, the strategy does not typically invest in distressed countries, which are rated CCC+ or below.
Emerging Markets Debt portfolios are subject to certain risks such as market and investment style risk. Fixed-income investments are subject to certain risks such as interest rate, inflation, and credit risks. Foreign investing involves certain risks, including currency fluctuations and controls, restrictions on foreign investments, less governmental supervision and regulation, less liquidity, and the potential for market volatility and political instability. In addition, investing in emerging markets may involve relatively higher degrees of volatility.
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