Emerging Markets

Breaching Benchmark Borders in Emerging Markets

By Joyce Huang
Stylized image of people and bar charts in shades of blue and pink.

Key Takeaways

  • Misunderstood and mispriced risks associated with emerging markets debt (EMD) securities often create inefficiencies and anomalies. These irregularities can translate to attractive investment opportunities for experienced managers.

  • We seek to exploit these inefficiencies via a fundamental, research-driven, bottom-up approach combined with robust macro and thematic analysis and a disciplined valuation framework.

  • Our approach is unconstrained by benchmark limitations, allowing us to seek diversified—and out-of-index—sources of return. It includes active positions in duration, yield curve, country allocation, sector allocation, currency allocation, and security selection. We believe this approach helps generate a more consistent return profile.

Author
Joyce Huang
Joyce Huang

Vice President

Senior Client Portfolio Manager

Breaching Benchmark Borders in Emerging Markets

Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.