Emerging Market Bonds
- Generate a total return of 4-6%, net of fees, from income and capital growth over the medium term
- Maintain low overall volatility with a standard deviation of 4-6% (c.50% lower than that of global equities)
- Provide diversification from other major asset classes (particularly developed market equities and fixed income)
The strategy pursues an unconstrained approach with the flexibility to take advantage of idiosyncratic opportunities as and when they arise. Typical characteristics of the strategy are:
- Concentrated portfolio of 30-50 holdings
- Short duration (average less than 5 years)
- Hard currency USD denominated, publicly traded liquid bonds
- Investment Grade and High Yield
- 100% corporate and quasi-sovereign issuers
- Industry and geographic diversification
- Rigorous selection process based on proprietary bottom-up issuer research, including ESG integration.
J. Stern & Co. offers the Emerging Markets Bond strategy in bespoke portfolio accounts.