VanEck’s Fine and Gurushina On Opportunities in EM Bonds

Eric Fine, Portfolio Manager and Natalia Gurushina, Chief Economist for the active Emerging Markets Fixed Income Strategy at VanEck make the case for emerging market debt.

WEBCAST: Back on the Map: Why EM Bonds Today.

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

Accepted for 1 CFP®/IWI/CFA CE Credit.

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