THREADNEEDLE EMERGING MARKET LOCAL - Fund overview

Portfolio

• Asset Allocation
• Equity Geographic
• Equity Capitalisation

Allocation		Proportion
	Equity	–
	High yield bonds	39%
	Quality bonds	39%
	Property	–
	Commodities	–
	Hedge	–
	Fund cash	22%

Allocation		Proportion
	UK	–
	Europe	–
	Nth America	–
	Japan	–
	Pacific	31%
	Other Equity	69%

No data available.

View all performance data for THREADNEEDLE EMERGING MARKET LOCAL

Investment process

The process is macro driven with the team making an assessment of the credit worthiness of and the political risks posed by a country. Although this is a benchmark relative product the manager can zero weight countries in the index if he choses to and use cash aggressively if the asset class is unattractive.
A quantitative country model drives the macro economic assessment and this is updated quarterly. This helps the manager makes relative value calls between countries and in the past it has helped to signal at risk countries. On a daily basis the manager will often pre-empt the model to take advantage of bond price moves. The assessment of political risks is country specific and is often driven by the judgement and experience of the manager and his team.
The manager will take advantage of disparities between cash and derivative markets. Corporate debt is unlikely to be a significant feature of the fund.