Economies around the globe may be highly interconnected today, but they’re not always in sync.
Portfolio Manager Hemant Baijal and the Global Debt Team recognize that different countries are at different stages of economic and development cycles.
Often countries with less wealth have the greatest aspirations, and that’s where transformative growth is occurring. Understanding these economies requires local knowledge and local information. To recognize the opportunities, we believe you need to look past the short-term volatility and see the bigger picture.
Fixed income investing entails credit and interest rate risks. Interest rate risk is the risk that rising interest rates or an expectation of rising interest rates in the near future, will cause the values of a fund’s investments to decline. Risks associated with rising interest rates are heightened given that rates in the U.S. are at or near historic lows. When interest rates rise, bond prices generally fall, and the value of a portfolio can fall. Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes, regulatory and geopolitical risks. Emerging and developing market investments may be especially volatile.