All investments involve risk. The value of your investment and the income from it will fluctuate and a loss of capital may occur.
A dedicated allocation to EM debt can offer investors much more than yield enhancement alone. Today, volatility has brought dispersion back to these markets, creating new opportunities to invest in assets at attractive valuations.
1 AUM data as of 30 June 2022.
2 Data as of 30 June 2022. Investment professionals include portfolio managers, research analysts, traders, portfolio strategists and product specialists, and are subject to change.
For illustrative purposes only. We are not soliciting or recommending any action based on this material. Any views represent the opinion of the manager and are subject to change.
3 JP Morgan as of 31 December 2020
Rigorous credit selection seeks to maximize returns and downside protection
Stable investment team with one of the most established track records in the industry.
Compelling risk-adjusted returns
Attractive yields, high credit ratings, and low duration underpin the attractive risk/return profile of EM corporate bonds – and are increasingly drawing investors to the asset class.
A closer look at the factors driving expectations for the rate of fallen angels among EM investment grade corporates
The Sub-Fund is actively managed, in reference to a benchmark. Many of the securities in the Sub-Fund may also be represented in the benchmark because the Investment Manager uses it as a basis for portfolio construction, but the Investment Manager has some discretion to deviate from the Benchmark composition and risk characteristics within certain risk parameters. The Sub-Fund may share some composition and risk characteristics with the Sub-Fund’s benchmark, though the Investment Manager’s discretion may result in performance that differs from the Sub-Fund’s benchmark.
Potential Investors should consider the following key risks before investing in the Sub-Fund:
Fixed Income Default Risk: The failure of an issuer or a counterparty to meet its payment obligations of a financial asset in the Sub-Fund will have a negative impact on the Sub-Fund.
Derivative Risk: A Sub-Fund may use derivative instruments for both efficient portfolio management and for investment purposes. Derivative transactions may be subject to significant volatility which may result in a loss greater than the principal amount invested.
Counterparty Risk: A Sub-Fund may have credit exposure (by virtue of position in swaps, repurchase agreements, FDI etc.) to its trading parties and may bear the risk of default of the counterparties.
Operational Risk: A Sub-Fund may risk loss resulting from process failures, inadequate procedures or controls.
Liquidity Risk: The risk that the Sub-Fund may invest some of their assets in illiquid securities and other illiquid financial instruments, in respect of which they may not always be possible to execute a buy or sell order at the desired price or to liquidate the open position.
Below Investment Grade Debt Securities Risk: Where Sub-Funds invest in securities rated below investment grade, also known as high yield securities, they may be subject to a greater credit, liquidity and market risk than investment grade debt securities.
Interest Rate Risk: Fixed income securities are typically interest rate sensitive, therefore changes in interest rates can result in positive or negative fluctuations in the value of the assets held by the Sub-Fund.
Currency Risk - Base Currency: Securities may be denominated in currencies different from the Sub-Fund's Base Currency and there is a risk that changes in exchange rates and exchange control regulations may cause the value of the assets expressed in the Base Currency to rise or fall.
Emerging Markets Risk: Emerging markets are typically smaller, less transparent, and subject to evolving, less stable political and regulatory regimes and securities from these markets may be more expensive to transact in, bear higher risk or have lower liquidity.
Counterparty Risk – Depositary and Sub-Custodians: Custody services in many emerging markets remain undeveloped and there is a transaction and custody risk of dealing in emerging market investments.
Investment in Russia Risk: Risks of investing in Russia arise from legislative change, from poor standards of corporate governance and investor protection and from regulatory change.
Risks Relating to China: Risks of investing in China arise from an uncertain taxation and political regime, restrictions on inward investment, dealing in closed currency and custody arrangements which are not to the same standard as those in developed markets.
The risk factors described above should not be considered an exhaustive list of risks, which potential investors should consider before investing in the Sub-Fund. For more details on the fund's potential risks please read the Prospectus and Key Investor Information Document at pinebridge.com/funds
Unless otherwise stated, all information is as of 31 December 2020 and sourced from PineBridge Investments internal data. PineBridge Global Emerging Markets Corporate Bond Fund (the "Fund") is a sub-fund of PineBridge Global Funds, an Irish domiciled UCITS umbrella fund, authorized and regulated by the Central Bank of Ireland. PineBridge Investments is a group of international companies that provide investment advice and market asset management products and services to clients around the world. PineBridge Investments is a registered trademark proprietary to PineBridge Investments IP Holding Company Limited.
This material does not constitute investment, financial, legal, tax, or other advice; investment research or a product of any research department; an offer to sell, or the solicitation of an offer to purchase any security or interest in a fund; or a recommendation for any investment product or strategy. PineBridge Investments is not soliciting or recommending any action based on information in this document. Any opinions, projections, or forward-looking statements expressed herein are solely those of the manager, may differ from the views or opinions expressed by other areas of PineBridge Investments, and are only for general informational purposes as of the date indicated. Views may be based on third-party data that has not been independently verified.
PineBridge Investments does not approve of or endorse any republication of this material. You are solely responsible for deciding whether any investment product or strategy is appropriate for you based upon your investment goals, financial situation and tolerance for risk. Investors should seek professional advice and refer to the PineBridge Global Fund’s Prospectus, the Key Investor Information Document (KIID), and the most recent financial statements, which include risk factors and terms and conditions and which should be read before investing, and may be obtained free of charge in Ireland from PineBridge Investments Ireland Limited, or any of its appointed distributors.
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