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Generali Investments Luxembourg and Aperture Investors launch a new fund
Investment Funds

Generali Investments Luxembourg and Aperture Investors launch a new fund

The investment approach is based on a quantitative framework that analyzes fundamental economic data from more than 75 emerging countries.
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27 MAR, 2023

By RankiaPro Europe

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Generali Investments Luxembourg and Aperture Investors, part of Generali Investments’ ecosystem of asset management firms, announce the launch of Aperture Investors SICAV - Emerging Debt Opportunities Fund, a value-oriented fixed-income strategy investing in corporate, sovereign, and quasi-sovereign debt securities of selected emerging markets.

For the last three decades, the total return for emerging markets' external debt has exceeded US Treasuries and US High Yield, and the asset class is considered an attractive investment opportunity, as these geographies record continuous GDP growth, lower public debt ratios compared to developed countries, and steadily improving credit quality.

The long-duration strategy aims to seize the opportunities generated by the approaching end of the rate hike cycle and the normalization of the US yield curve, which has shifted dramatically over the past 18 months. Looking at the past, when US dollar yields have peaked, subsequent periods have proved very positive for emerging market returns: credit spreads often tighten, currencies appreciate and equity markets rally, and the new strategy intends to focus on these opportunities.

The investment approach is based on a rigorous quantitative framework that analyzes fundamental economic data from more than 75 emerging countries, representing the primary filter for more than 2000 bonds. The investments team then analyzes for liquidity, credit rating, maturity, and sector to find potential opportunities both in the government and private sector segment. The Sub-Fund’s investment team is led by Peter Marber, Head of Emerging Markets at Aperture Investors with a consolidated track record through numerous investment cycles and is composed of investments professionals who have worked together for many years, managing the Aperture New World Opportunities strategy since its launch.

The new fund offers a different risk profile to the already existing New World Opportunities strategy. The latter carries a duration of only 2.5 years and BBB- blended Investment Grade credit rating, while the new strategy is slightly lower rated, averaging BB+, with nearly triple the duration. Over the last decade, the longer duration benchmark has exhibited more than twice the volatility of the shorter duration one, but the longer duration strategy also has the potential for higher returns in certain market environments.

Aperture Investors SICAV - Emerging Debt Opportunities Fund features the JP Morgan Emerging Markets Bond Index Global Diversified as its official benchmark and is registered in Austria, France, Germany, Italy, and Spain.

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