Video Transcript
Marco Ruijer, CFA,
Portfolio Manager, Emerging Markets Debt Team
Most EMD managers are organized on a regional basis but as the volatility between countries in certain regions can be so different, we believe bucketing by volatility is a more optimal approach for portfolio construction. Countries are at different levels of development within regions. There are, for instance, large differences of GDP per capita, rule of law, and quality of life. So it’s essential to look at issuers in the context of what we see as their true peer group across regions. We build these peer groups to be fairer to issuers in the way we assess them. And low-, medium, and high-beta risk bucketing allows us to do that really well.
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