Emerging Markets Fixed Income Opportunities Strategy

Emerging Markets Fixed Income Opportunities Strategy

Emerging Markets Fixed Income Opportunities Strategy


The Emerging Markets Fixed Income Opportunities Strategy seeks to provide access to the full spectrum of Emerging Markets (EM) fixed income. The team seeks to identify the best investment opportunities across hard and local currency instruments, as well as sovereign and corporate issues by utilizing an approach that combines top-down macro assessment with rigorous bottom-up fundamental analysis. The strategy focuses on maximizing total return with a high level of current income, while at the same time maintaining potential capital appreciation.


Investment Approach

As Emerging Market (EM) economies have changed and developed over the past two decades, so too has the opportunity set available to fixed income investors. Given the impact of global macro themes and idiosyncratic factors on EM fixed income performance, it has never been more important for investors to have the flexibility to invest across the entire fixed income investment universe. An opportunistic approach which provides exposure to both foreign (U.S. dollar) and local currency fixed income assets, whether sovereign or corporate, could provide benefits such as:

· Return potential  

· Lower volatility

· Holistic approach 


We are active managers with an exclusive focus on alpha generation, a scarce commodity in today’s bond markets dominated by large passive investors. We are also backed by the global resources of Morgan Stanley, which makes us the “best of both worlds” for clients – true alpha focus with the support of a major institution.


Our corporate credit research analysts have a cohesive view of the market by covering the full credit spectrum, from investment grade  to high yield. Our macro research analysts cover the global market, spanning developed markets through emerging markets. And our mortgage and securitized analysts cover the broad spectrum of global real estate and asset-backed securitizations.


The portfolio managers on the Global Fixed Income team have an average of 25 years of investing experience and are focused on generating alpha. Our portfolio specialist team help design client solutions and keep portfolio managers connected to clients. Beyond seeking the best speed and efficiency in trade execution, our trading team thinks like investors with an average of 17 years investment experience.

Investment Process
Identify macro-fundamental drivers

First the team conducts a top-down assessment of the global environment to determine how it interacts with economic fundamentals in emerging economies. The analysis of global and financial conditions, and their likely impact on EM fundamentals, helps to determine the overall risk positioning in the portfolio. 

Derive thematic investment thesis

Here the team identifies countries that exhibit positive fundamental rates of change using frameworks that meld economic, political and social assessments.

Evaluate investment opportunity set

The team evaluates the opportunity set using a number of techniques that include sovereign analysis, currency, interest rate and yield curve analysis and credit analysis.

Security selection and portfolio construction

The team’s models provide perspective on market valuations in different time periods, enabling them to identify potential mispricing and alpha opportunities. Each potential security is analyzed through a variety of valuation metrics. The team uses a Positioning & Sizing framework that takes into consideration the total return potential of investment alternatives, the volatility of returns and correlation of such potential positions to assess risk, and a conviction factor about the return/risk trade-off based on a comprehensive review of event risk (including near-term political factors) and the market technicals such as planned issuance, investors’ positioning, and outlook for asset class flows.

Diversify and execute

Risk management is integral to investment process. They place emphasis on diversification and the correlations between asset classes and concentrations of countries, themes, regions, sectors, and commodities.

Portfolio Managers  
Sahil Tandon
Sahil Tandon
Managing Director
20 years industry experience
Akbar Causer
Akbar A. Causer
Managing Director
19 years industry experience
Brian Shaw
Brian Shaw
Executive Director
17 years industry experience

Effective November 16, 2021, Eric Baurmeister is no longer serving as a portfolio manager on the Strategy.

Effective July 19, 2022, Brian Shaw and Akbar Causer have been added as Portfolio Managers to the Strategy. Warren Mar and Budi Suharto are no longer serving as Portfolio Managers to the Strategy. 









This is a Marketing Communication.

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