Investment Strategies > Sustainable Emerging Market Debt Hard Currency

Sustainable Emerging Market Debt Hard Currency

Invests in hard currency emerging market fixed income opportunities with a strong sustainability profile

Early investors in EMD, senior portfolio managers have been working together since 2000
Diversified portfolio of EMD sovereign and corporate bonds issued in major currencies with a strong ESG focus
Robust sovereign research process with proprietary coverage of over 90 emerging markets countries by our stable, well-resourced investment team
Combines top-down asset class analysis with bottom-up country and issuer review to seek out attractive relative value
Sustainability approach focused primarily on climate transition risks and progress towards achieving the United Nations Sustainable Development Goals

Bart van der Made

Senior Portfolio Manager

Kaan Nazli, CFA, CAIA

Gorky Urquieta

Senior Portfolio Manager and Global Co-Head of Emerging Markets Debt

Rob Drijkoningen

Senior Portfolio Manager and Global Co-Head of Emerging Markets Debt - Head of Fixed Income Europe

Overview

Access the growing opportunities in Emerging Markets with a strong sustainability profile, denominated in hard currency.

Investment Process

Top-down and bottom-up approach with multiple alpha sources allocated opportunistically

1. Top-Down Assessment of Global Market Conditions

Incorporates analysis of global economic drivers, individual country fundamentals, technical factors including supply and demand, and market pricing.

2. Bottom-Up County / Issuer Credit / Local Rates, EMFX & ESG Review

Includes fundamental analysis of issuers, integrates environmental, social and governance (ESG) scores, country creditworthiness and security analysis.

3. Strategy Setting, Risk Management & Portfolio Construction

Team combines top-down and bottom-up inputs with risk management to create a model portfolio.

4. Portfolio Customization Process & Performance Evaluation

Ongoing process and performance evaluation.
Portfolios are adjusted for client-specific guidelines.

The Strategy Focuses on Three Key Sustainability Objectives

1. ENVIRONMENT
Preparedness and Resilience for Climate Transition Risks Assign higher portfolio weight to issuers which demonstrate better advancement in climate change adaptation and mitigation, reducing GHG emissions and net zero alignment

2. SOCIAL
Progress Towards Achieving the UN SDGs Assign higher portfolio weight to issuers which demonstrate better progress in achieving the Sustainable Development Goals, with a particular focus on public health and education

3. DO NO HARM
ESG Exclusions Exclude sovereign issuers with very weak ESG practices (e.g., in GHG emissions, human rights standards)¹ Exclude corporates & quasi-sovereign issuers on the NB Enhanced Sustainable Exclusion list (e.g., fossil fuels, weapons, UN Global Compact violators)¹

1. Use of proceeds instruments may be considered unless the issuer is excluded due to human rights policy. For illustrative purposes only. This material is intended as a broad overview of the portfolio managers' style, philosophy and investment process and is subject to change. This is provided for informational purposes only with respect to an investment product that Neuberger Berman may offer in the future. This is not an offer or solicitation to invest in any product. Any characteristics of the product mentioned on this page may be subject to change.

Proven Multi-Site Approach

Our presence across three emerging markets time zones allows us 24 hour-a-day market coverage, access to local in-depth knowledge and research and timely execution of investment decisions.