Strategy Overview

Key Facts

Why invest?

Diversified growth exposure

Access the benefits of diverse sources of growth in emerging markets and Asian fixed income 

Investing in emerging markets debt and Asian fixed income offers the potential for strong returns, an attractive income stream and diversification benefits versus developed markets. As emerging or developing markets have more opportunity to grow their economies (coming from a lower base) there is potential for more upside for investors relative to developed markets. These countries – and their investment universes – continue to grow and evolve which creates opportunity for diversification. In Asia, specifically China, we have seen these markets already mature notably in recent years. However, they continue to have significantly stronger outlooks for projected economic growth when compared to developed markets, supporting future potential growth. While emerging markets can be more volatile and illiquid than their developed counterparts, our active investment approach and focus on liquidity aims to protect our client’s capital.

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investment process

Choose an investment style that can deliver attractive risk-adjusted returns
Our actively managed, disciplined investment process combines top-down and bottom-up research. Our strategies aim to generate returns and preserve capital over a market cycle. We have successfully managed portfolios in this space through a range of market cycles since 2009, with no corporate defaults in our corporate emerging market strategies (as at 31 January 2018. Past performance is not a guide to the future). Portfolios are constructed with risk management at every step of the investment process resulting in diversified portfolios that can navigate different market environments. For over ten years, Environmental, Social and Governance (ESG) considerations have been integrated into our research process, assisting us to identify and manage risks in our portfolios.

Our investment process >

ION System

Collaboration between our experienced and diverse investors create synergies across capabilities
As emerging markets continue to evolve, so do the investment opportunities. Through our proprietary technology platform, the Investment Opinion Network (ION), our investment team (based in London, Singapore and Hong Kong) seamlessly shares research and investment thinking globally. Our shared research covers the key factors that influence and ultimately drive returns; macro-economic outlook, valuations for rates, credit and currency markets, and sentiment in those markets, political outlook and technical assessment. These factors help formulate an outlook within each country for each asset class that forms the basis of our strategies. These strategies are implemented with a medium-term time horizon with a focus on risk return profiles, high quality credit analysis and appropriate risk management.

Tailored Solutions

We offer flexible portfolio construction & a diverse range of strategies designed to suit a range of clients’ needs
Emerging markets in fixed income offer a variety of sub-asset classes that can be invested in a standalone or a combined way, including sovereigns or corporate bonds, local or hard currency (USD), investment grade or high yield bonds and foreign exchange. As well as accessing the above range of sub-asset classes, our clients can also benefit from access to a large range of potential return drivers within these asset classes. We can also seek returns from interest rates, credit spreads, country idiosyncratic risk and global macro economic factors.

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Responsible Investment

Responsible Investment

Our corporate RI strategy is based upon three strategic pillars of quality, stewardship and engagement.
Our approach to investing is driven by a commitment to providing the best possible outcomes over the long term for our clients. The team considers ESG factors relative to their potential impact on financial performance. We believe that ESG issues have a significant bearing on risk. Learn more about the Emerging Markets Debt/Asian Fixed Income team's approach to Responsible Investment.

More about Responsible Investment at First State Investments >

Performance and Documents

Investment Team

Emerging markets debt and Asian fixed income is not just about the asset class, but the experience of the people investing in the asset class. Being on the ground in Asia since 1999, we believe we can deliver a more in-depth view of the many complexities of the region. Our team have worked and lived through most of the many economic cycles Asian and Emerging financial markets have been through in the last decade. Our investment team, based in the UK, Hong Kong and Singapore are experts in their fields with an average of over 19 years of industry experience as at 31 January 2018. They effectively share research and investment thinking through our proprietary technology platform, the Investment Opinion Network (ION).

Jamie Grant
Head of Emerging Markets and Asian Fixed Income
Jamie Grant
Head of Emerging Markets and Asian Fixed Income
Helene Williamson
Head of EM Investments
Helene Williamson
Head of EM Investments
Nigel Foo
Senior Portfolio Manager
Nigel Foo
Senior Portfolio Manager
Nicole Hsieh
Senior Portfolio Manager
Nicole Hsieh
Senior Portfolio Manager

For more information

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