Back on the Map: Why EM Bonds Today – VanEck – 2.16.23

Overview:
Title: Back on the Map: Why EM Bonds Today
Date: Thursday, February 16, 2023
Time: 1:00 PM Eastern Standard Time
Duration: 1 hour

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Summary:

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In today’s environment, fixed income is at the forefront of investor thinking, but the opportunity in emerging markets (“EM”) bonds may be flying under the radar. Compared to developed markets (“DM”), EM countries have lower debt, may pay higher yields, and have independent central banks solely focused on inflation. Many EM countries also have tailwinds from commodity exports, particularly in light of China’s reopening. The bottom line is that investors’ allocations to EM debt do not reflect either its historical attributes or the prospective opportunity.

Understanding the nuances of emerging markets can be a challenge but with 30 years of experience, Eric Fine, Portfolio Manager, and Natalia Gurushina, Chief Economist, will share insights into why recent developments likely warrant a reassessment of fixed income exposures. As the leader of the first EM “blend” Fund, Eric’s approach deftly maneuvers across corporates and sovereigns, in USD and local currency, allowing investors access to all of these opportunities in the EM bond space. Last year, this resulted in no exposure to Russia at the onset of the Russia-Ukraine conflict, which was unique positioning among peers in the space.

  • The Fund’s investment process – how to find cheap bonds
  • The case for EM debt – EM debt’s historical performance compared to the other major debt categories warrants much higher allocations to EM debt
  • China’s re-opening combined with high carry is good for EM bonds’ outlook

Speakers:
Eric Fine Eric Fine Portfolio Manager for the active Emerging Markets Fixed Income Strategy VanEck

  • Oversees the Emerging Markets Fixed Income Team including asset allocation, fixed income research and security selection
  • Joined VanEck in 2009
  • Prior to VanEck, held senior leadership positions at Morgan Stanley including founding and managing Morgan Stanley’s Emerging Markets Proprietary Trading group
  • Advised numerous governments on economic policies and debt profiles; rescheduled sovereign debts in Turkey and the Dominican Republic
  • MPA, International Trade/Finance, Harvard University
  • BA, Public Policy, Duke University
Natalia Gurushina Natalia Gurushina Chief Economist for the active Emerging Markets Fixed Income Strategy VanEck

  • Joined VanEck in 2013
  • Prior to VanEck, worked at Roubini Global Economics in emerging markets currency/fixed income and G10 currency strategies
  • Previously, Analyst at Pantera Capital Management and as EMEA Economist at Deutsche Bank and Russia/CIS Economist at Bankers Trust
  • PhD, Economic History, University of Oxford
  • BA, Economics, Moscow State University
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