During the three-month period, the Multi-Manager Emerging Markets Debt Opportunity Fund returned 4.29%, compared with the blended benchmark return of 4.39%. The Fund is underweight Asia, which benefited relative results. Market-level exposure to Latin America aided returns, with Latin American bonds the strongest performers in the Index.
Of the two sub-advisers, Bluebay was the weaker performer. Their underweight exposure to Mexican interest rates, which rallied across the yield curve, detracted from results, as did their underweight in Argentinian hard currency markets. At the end of the period, the Fund had an exposure of approximately 5% in emerging market corporate bonds.
If you're a long-term investor looking to diversify your investments by pursuing the income potential of emerging or frontier markets debt issuers, then this Fund may be right for you. It is intended for investors who are aware that foreign markets may involve additional risks, such as social and political instability, reduced market liquidity and currency volatility.
- Invest at least 80% of net assets in fixed income securities that provide exposure to issuers tied to emerging or frontier markets. The Fund's investments provide exposure to a blend of local and hard currency emerging markets debt and opportunistically invest in emerging market corporate bonds.
- Select complementary managers from a broad universe of investment managers.
- Blend managers into a single fund in an effort to provide an attractive combination of risk/return.