After a year like 2012 Global EM Bonds are likely to become more pervasive and nuanced according to Baron’s writer Reshma Kapadia.
Citing Jan Dehn, co-head of research at emerging markets shop Ashmore Investments Management, Kapadia writes that “ the great unwind”
of developed economies may become a real problem as heavy debt loads and current account deficits start to gain significantly more traction with investors.
In terms of strategy, Dahn points out the low correlation of EM/Global government fixed income and attributes continuing trade as a macro rotation by investors such as himself. Dhan also goes on to point out that EM government (locally denominated) fixed income insulates investors against weakness in the US Dollar.
Needless to say, we at Excel Funds still firmly believe in the growth of this asset class and offer investors the Excel High Income Fund.
The High Income Fund is a great vehicle that helps investors earn real yields in a low interest rate environment while on exposing portfolios to low-medium risks.
Written by Jack S.
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