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Emerging Markets

Emerging sovereign debt

What we offer you:

  • 20 years' experience in emerging sovereign debt
  • Expertise in managing a broad range of EM Sovereign Debt strategies to fit our clients’ needs
  • Locally-based investment professionals help identify investment opportunities
  • A proven investment approach

Pictet Asset Management has been a pioneer in emerging sovereign debt investing since 1998. Today, we manage over USD 14 billion in this asset class1, across both hard and local currency strategies.

EM Sovereign debt launch

 

Our emerging sovereign debt capabilities

Our 12 investment professionals are located in London and Singapore. They have experience in both developed and emerging debt markets. Having team members in Asia adds vital local perspective and increases our time-zone coverage. 

With an average of 16 years’ investment experience, they are able to draw upon the firm’s wider investment resources, as well as our Strategy Unit (PSU) and Economic Analysis team.

Our approach to investing in emerging market government bonds

We take a top-down view of the macro environment to determine the general outlook for emerging markets. This is combined with a bottom-up analysis of country fundamentals, which is the key driver of currency and interest rate positions. We believe these are distinct sources of alpha and are therefore managed separately.

Our investment managers are organised by region, covering all instruments including local bonds, foreign exchange and USD denominated bonds. They also conduct global macro analysis to better understand the risk backdrop. We believe this provides the most comprehensive view of the opportunity set present in each emerging debt market.

Chinese local currency debt

We launched our first single-country strategy, Chinese Local Currency Debt, in March 2015. The team invests predominantly in onshore Chinese bonds from both government and corporate issuers. The portfolio is actively managed and places equal emphasis on top-down assessment of the macro environment and bottom-up credit selection.

China is the world's third largest bond market and offers investors attractive yields and the potential for long-term currency appreciation. – Cary Yeung, Head of Greater China Debt
The strategy is managed by a team based in Hong Kong and benefits from the firm’s wider investment and operational infrastructure.

For more information on our EM sovereign debt strategies, contact your usual Pictet AM representative or click on 'Contacts' at the bottom of this page.