in emerging market debt is through an unconstrained diversified strategy. I wouldn’t necessarily go local currency long only just because it’s attractively priced. It might be a value trap, and in many cases it is. Conversely, in some countries the macro-economic outlook isn’t favourable but at the corporate level there are exciting developments.


PI: Is everyone else investing actively in emerging markets? Mordezki: It seems to be the case in Latin America. Passive investment has the potential to deliver unwanted results. If you have two companies and one has deleveraged significantly while the other has been running out of control, the benchmark will put more weight on the bad performer, the one that has more outstanding debt.


14 June–July 2019 portfolio institutional roundtable: Emerging market debt


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