Fixed Income  

Emerging market debt: Adviser views

This article is part of
Emerging Market Debt - May 2014

Emerging market debt saw a substantial sell-off in late 2013, but with glimmers of hope that this may be starting to reverse we ask advisers what they think of the asset class.

Susan Hill, Susan Hill Financial Planning

“I don’t currently use emerging market debt, but that’s because my clients generally have a balanced to cautious attitude to risk and are seeking capital protection and regular withdrawals of income. Emerging market debt is too volatile to include in this type of portfolio and doesn’t serve their objectives.”

Patrick Connolly, Chase de Vere

“We have never been supporters of emerging market debt, believing it to be over-hyped when some advocates were suggesting it offered strong performance, high yields and low risk. While prices have fallen we’d still rather get fixed interest exposure through strategic bond funds, where managers can invest in emerging market debt if they see fit.”

Jaskarn Pawar, Investor Profile

“Emerging market debt is like any other type of investment, it is interesting and useful as part of a well diversified portfolio but is never going to be the answer to your problems on its own. When investing in debt-based investments, such as bonds and gilts, you have to define why you are investing. Is it to manage risk or income? Once you know that you can make better decisions as to how you integrate different types of fixed interest stocks into a portfolio.”