The investment objective of the Emerging Markets Debt strategy is to achieve 1.5 to 2% over the CEMBI Broad Diversified Index over a market cycle by targeting long-only Credit opportunities across global Emerging Market Corporate Bonds, Emerging and Frontier Sovereigns and Provincial Debt Markets.
PHILOSOPHY
- RVX believes Emerging Markets are experiencing positive fundamental change and present attractive investment opportunities for investors.
- RVX believes these opportunities are created by misunderstood and mispriced risks that lead to inefficiencies and anomalies that can be exploited.
- RVX believes an active, top-down, fundamental, relative value approach to evaluate countries, sectors and companies is the best way to exploit these inefficiencies.
PROCESS
Macro View
- The team begins with an analysis of the global macroeconomic environment, the corresponding impact on Emerging Markets, and the market’s overall risk appetite.
Sovereign View
- The team’s objective is to analyze credit opportunities in countries benefitting from the global macroeconomic environment, identified as those exhibiting positive rates of change in their economic, political, and social outlook.
Industry & Company View
- The team reviews an assortment of measurements to assess the credit worthiness of particular issuers within the framework of the team’s sovereign perspectives and also the issuers’ industry outlook.
- Each potential security is analyzed through a variety of credit and valuation metrics.
Portfolio Construction & Risk Management
- The team seeks to identify potential mispricing and alpha* opportunities.
- Broad diversification across countries, sectors, and credits.
- Risk management is integrated throughout the team’s investment process. A designated Chief Risk Officer monitors portfolio adherence to guidelines, overall risk levels, and portfolio composition.
*Alpha: The excess returns of a fund relative to the return of a benchmark index is the fund’s alpha.(from Investopedia)
Emerging Markets Debt Profile
| Strategy Inception | 12/31/2016 |
|---|---|
| Strategy | Long-only EM Corporates |
| Average Duration | 5–10 years |
| Vehicle | Separate Accounts |
| Benchmark | JP Morgan CEMBI Broad Diversified |
|---|---|
| Denominations | Hard Currency Only |
| Yield | 150 – 200 bps over the Bloomberg EM Corp |
| Capacity | $3 Billion |
Emerging Markets Debt Fact Sheet
Disclosure
RVX is currently registered as an investment advisor with the SEC. This material is for informational purposes only and represents RVX’s investment opinions and should not be construed as personalized investment advice. RVX cannot assess, verify, or guarantee the suitability of any particular investment to any personal situation and the reader of this material bears complete responsibility for its own investment research and should seek the advice of a qualified investment and/or tax professional prior to making any investment decisions. RVX may only transact business or render personalized advice, and offers of service can only be made, in those states or international jurisdictions where RVX is registered or where an exemption or exclusion from registration is available. Nothing herein is an offer of any service that is not legal for offer into any particular jurisdiction with RVX’s current licensure (if any).
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