null Emerging Markets Debt Local Currency Beta

Emerging Markets Debt Local Currency Beta

Passive Fixed Income Efficient Beta Emerging Markets
  • Benchmark JPM GBI EM Global Diversified Index
  • Inception Date October 2019

Strategy Overview

Mellon’s Emerging Markets Debt Local Currency Beta strategy offers exposure to high quality bonds that can deliver high yield as well as potentially attractive total returns. Unlike hard currency sovereign and corporate debt, local currency total returns exhibit low correlations to US rates and credit, making it an ideal diversifier to a global bond allocation.

 

Objective
The strategy utilizes an efficient, disciplined and systematic approach designed to capture benchmark-like returns after frictional costs against the JPM GBI EM Global Diversified Index.

 

Approach
In order to achieve the full premium from local currency, investors must overcome performance drag from trading costs, withholding taxes and operational hurdles. Our efficient beta approach seeks to recoup the performance drag by harvesting diversified term premia while keeping tracking error volatility to a minimum and total risk in line with the benchmark.

 

Please note that all investment strategies involve risk.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.