The investment objective of the Fund is to generate capital growth through strategic investment exposure, both long and short, primarily to debt securities of sovereign and corporate obligors and currencies, including derivatives related thereto, all principally in emerging markets.
Latest Meeting Note
Meeting 22 Jan 2021
EMSO is an emerging markets fixed income specialist currently managing approximately $6.5bn across sovereign, quasi-sovereign, corporate, and local market investments. Central to EMSO’s investment philosophy is the combination of both lo... Read more
EMSO is an emerging markets fixed income specialist currently managing approximately $6.5bn across sovereign, quasi-sovereign, corporate, and local market investments. Central to EMSO’s investment philosophy is the combination of both long-term strategic themes and shorter-term tactical idiosyncratic opportunities, with the PMs leveraging the breadth and depth of the firm’s infrastructure (85 employees, including 25 on the investment team). The strategy launched on the Franklin K2 platform in November 2020 being previously managed as a standalone UCITS vehicle since April 2015. The portfolio is managed by Mark Franklin (Founder and CIO) and John Hynes (Senior PM) who employ a macro, value-driven, emerging markets debt strategy that seeks to identify valuation anomalies in EM fixed income markets. These are identified using fundamental credit and political analysis. The team focuses primarily on sovereign credit (40-60% of risk) and local markets, with additional emphasis on corporates (0-10%). In the sovereign credit space the fund invests in both investment grade and high yield situations, looking to benefit from macro-economic themes as well as country specific opportunities (seeking the excess risk premiums from absence of research coverage, instrument complexity, etc). In local markets the team invests in both high yield and high-grade opportunities in interest rates and currencies based on the firm’s assessment of macroeconomic themes and central bank policy in the respective markets. Finally in the corporate exposure, the fund typically invests in companies that could be considered systemic to a country (quasi-sovereign) or have changing balance sheet dynamics due to specific events.