Emerging
Markets
Debt
Seeking to deliver alpha through our expertise in a misunderstood market
Reasons to invest
Alpha from multiple sources
Sovereign and corporate research capabilities
Global themes
Rigorous risk management framework
Seasoned team
Adding EMD to an investment portfolio can provide essential diversification. In our view, and given that the low-yield environment is here to stay, not holding EMD in a portfolio is a risk in itself.
Why Emerging Markets Debt?
Our highly blended approach and rigorous research-driven process allows us to access a broad range of opportunities and exploit inefficiencies in this still-misunderstood market.
Our seasoned EM fixed income team comprises managers and investment professionals with complementary international backgrounds, each of whom brings a unique perspective on global markets.
We combine our bespoke ESG scoring system with the might of Federated Hermes’ industry-leading ESG tools and expertise. This powerful ESG input into the strategy allows our managers to remain highly connected to the sustainability profile of every company we invest in.
We take a unique and dynamic approach to risk. Supported by industry-leading proprietary credit tools, our team can identify risks early while still seeking to maximise returns through intricately researched country and security allocation.
How we invest
Investment philosophy
We believe that EM fundamentals are often misunderstood. The region’s sovereigns have lower debt loads than developed market sovereigns, and have the capacity to grow faster out of debt.
By taking a research-driven approach in this highly misunderstood market, we seek to capitalise on the region’s positive demographics and the long-term secular trends. Through country and individual security allocations, and a unique approach to managing risk, we aim to deliver superior returns with less volatility.
We have also developed a proprietary ESG research strategy that is designed specifically for the region and includes working with representatives at the country, industry, and company level to identify the most material ESG-related factors.
Investment process
The key to our investment process is in research
Team
Ihab Salib
Portfolio Manager
Jason DeVito, CFA
Lead Portfolio Manager
Mohammed Elmi, CFA
Lead Portfolio Manager
Product information
For the latest performance and vital information – including prices, key facts, identifiers and ratings
Our Purpose
To deliver Sustainable Wealth Creation
Like all our investment capabilities, Federated Hermes Emerging Market Debt aims to deliver Sustainable Wealth Creation: the generation of wealth through investments that enrich investors, society and the environment over the long term.
Our business provides three equally powerful pathways to achieving this aim. Emerging Market Debt features in the Active ESG route.
Responsible, active investing for long-term performance.
- Financial objective
- Best-practice integration of ESG analysis and engagement insights
- Some capabilities may enforce exclusions that reflect Portfolio Managers’ investment views
- Delivery of sustainable outcomes through effective stewardship
Federated Hermes Emerging Markets Debt
Thematic and values-based approaches for sustainable outcomes.
- Financial and sustainability objectives
- Best-practice integration of ESG analysis and engagement insights
- Exposure to sustainability themes
- Exposure to ESG leaders and industry exclusions that reflect sustainability values
- Delivery of sustainable outcomes through effective stewardship
Mission-led investment strategies to create positive impact.
- Financial and impact objectives
- Best-practice integration of ESG analysis and engagement insights
- Focus on companies generating impact or undergoing positive transformation
- Some capabilities may enforce exclusions that reflect defined sustainability values, impact considerations, or both
- Delivery of sustainable outcomes through effective stewardship
