EMD
Pioneers in
Emerging Market Debt
Investing

The senior members of Neuberger Berman's Emerging Market Debt team began investing in the asset class in 1994. With 28 investment professionals, the EMD team is one of the largest in the industry and has the extensive research capabilities required to capture opportunities across this diverse asset class. The team manages in excess of $9.6bn across a comprehensive platform of EMD solutions1.

1As at 30 December 2016

Conversation with Rob Drijkoningen

    Emerging Potential

    The EMD Team Believes:

    • Strong fundamentals, a growing investment universe and attractive yields relative to developed markets support the investment case for emerging market debt.
    • Emerging market debt is a generally improving asset class that is less efficient than developed debt markets.
    • Emerging markets are far from homogeneous: Active managers with extensive research capabilities can uncover alpha generation opportunities.

    Developing economies have lower public debt ratios on average compared to developed markets.

    General Government Debt as a Percentage of GDP

    Source: IMF World Economic Outlook (WEO), April 2016

    Asset class offers yield advantage potential.

    Current Asset Class Yields

    Source: J.P Morgan. As of 31-May-2016

    Several Ways to Access EMD

    Webinar

    Winners and Losers to Emerge: A Closer Look at Emerging Markets in 2017

    In this Q4 update, Rob Drijkoningen, Co-Head of Emerging Markets Debt at Neuberger Berman, examines the potential impacts of U.S. policy on the emerging world and explains why he believes the pull factors that spurred last year’s rally are still solid.


    Note: To access the replay you have to provide certain personal information, please refer to Privacy Policy for details.

    Why Neuberger Berman For Emerging Market Debt?

    With 28 dedicated investment professionals, the Neuberger Berman EMD team has the extensive research capabilities required to capture opportunities across this diverse asset class.

    The team has dedicated specialists focused on each EMD sub sector, enabling the four sector teams to develop deep knowledge of their own sub-strategy.

    Rob Drijkoningen

    Co-Head of Emerging Markets Debt

    26 Years of experience

    Bio

    Gorky Urquieta

    Co-Head of Emerging Markets Debt

    22 Years of experience

    Bio

    STRATEGY OVERSIGHT

    Hard Currency

    Bart van der Made

    Portfolio Manager

    19 Years of experience

    Bio

    Local Currency

    Raoul Luttik

    Portfolio Manager

    21 Years of experience

    Bio

    Corporate Debt

    Jennifer Gorgoll

    Portfolio Manager

    18 Years of experience

    Bio

    Nish Popat

    Portfolio Manager

    23 Years of experience

    Bio

    Tactical Asset Allocation

    Vera Kartseva

    Portfolio Manager

    9 Years of experience

    Bio

    The sub sector specialists are supported by the wider EMD team.

    The team follows a combined top-down and bottom-up approach, incorporating multiple sources of alpha potential. The top-down view determines the risk taken in the portfolios, while bottom-up research drives the selection of underlying investments.

    Proprietary research is crucial to the team’s investment process and is the basis for virtually all investment decisions.

    Top-Down EMD Asset Class Review
    • Incorporates analysis of global economic drivers, individual country fundamentals, technical drivers including supply and demand, and market pricing.
    • Top-down views are discussed and generated by the Tactical Asset Allocation ("TAA") team, and are leveraged across all strategies to define risk profiles.
    Bottom-Up Country/Issuer/FX Review
    • Includes country creditworthiness, analysis of individual credits, assessment of currency drivers and analysis of local interest rate conditions
    Strategy Setting, Risk Management & Portfolio Construction
    • Team combines top-down and bottom-up inputs with risk management to create a model portfolio
    Process & Performance Evaluation
    • Team refines investment process based on results of performance review

    ESG factors inform investment decisions

    At a country level, the team tracks statistical data on ESG factors to complement macroeconomic analysis. At a corporate level, ESG scores are assigned to each issuer and inform the team’s risk rating for each corporate issuer.

    Multi-lingual, multi-site team with a presence across 3 time zones. The team is based in Atlanta, The Hague and Singapore.

    Key benefits

    • Access to local in-depth knowledge
    • Markets are covered 24 hours a day allowing the team to optimise the timing of trades – the team seeks to execute when markets have the best liquidity.
    • The multi-site approach also allows for coverage of a range of complex domestic local markets, helping to avoid regional biases in investments.

    A Comprehensive EMD Platform

    The team manages six Irish domiciled funds, each developed to meet diverse risk profiles. The variety of EMD funds offered by Neuberger Berman allows investors to access the full potential of the asset class using an approach tailored to their investment needs.

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    Provides exposure to emerging market opportunities without currency risk. The Fund invests across the most established emerging market debt asset class, made up of sovereign and corporate bonds issued in major currencies.

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    Provides access to the growing opportunity in emerging market credit. The strategy invests in corporate bonds issued by developing countries—mainly denominated in hard currencies.

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    Seeks to harness emerging market debt opportunities in local markets. The Fund invests in local currency debt instruments—mostly from governments—giving investors the potential to benefit from declining local interest rates and currency appreciation.

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    Seeks to take advantage of emerging market spreads while offering a degree of protection from rising U.S. rates by focusing on securities with short duration. Aims to provide stable and attractive income with limited volatility and low turnover.

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    Combines the team’s best ideas across emerging market hard currency, local currency and corporate debt with an opportunistic allocation process. The Fund seeks to benefit from various risk premiums across the wider emerging market debt opportunity set.

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    Provides access to a deep and broad regional subset of the EM sovereign and corporate universe via investments in a diversified selection of Asian debt instruments.