GLG Emerging Markets Debt

The GLG Emerging Markets Debt strategies provide access to the complex universe of Emerging Markets debt through three distinct investment opportunities, all of which are managed by a seasoned investment team:

Investment Opportunities:

  1. Emerging Markets Local Currency Rates
  2. Emerging Markets Hard Currency Debt
  3. Emerging Markets Debt Total Return

The team believes in three fundamental tenets:

  • Emerging Markets debt and currency markets are inefficient
  • Inefficiencies are a result of the incorrect understanding and pricing of risk
  • An approach to investing that adds value by combining deep fundamental research with top down and quantitative screening


In summary, the team's key differentiators are:

  • Guillermo Ossés, Head of Emerging Markets Debt Strategies, has broad experience across all aspects of emerging markets debt investing including credit analysis, currency and rates trading
  • Portfolio managers who are specialists in their own areas, which creates diversification and fosters responsiveness 
  • The application of a strong valuation discipline to asses fundamental views and express them efficiently 
  • Strong risk management discipline helps to maximise information ratio and optimise model portfolio

Fundamental analysis and relative valuation are at the core of the investment process which is further enhanced by top-down views.

The investment process consists of four broad stages:

  • Bottom-up analysis - Based on proprietary models that aim to construct rankings of country credits, currencies and rates based on relative attractiveness and perform valuation analysis to determine if asset prices reflect the team's views on relative attractiveness. Much of the security selection for each country will be focused on identifying the richest / cheapest instruments across the curve.
  • Top down analysis and consideration of positioning - Any fundamental views are reconciled with top down views prior to implementation. In addition to macro themes and global scenarios, the team consider the degree to which there is crowding in the investment identified via bottom up analysis.
  • Model portfolio construction - Construction of the model portfolio is built around targets and available securities. The team uses the same process for all the portfolios with certain tweaks for each strategy and in particular the Total Return as there is more shorting involved.
  • Stress testing - Testing is conducted to ensure that the portfolios meet the tracking error, volatility and drawdown targets applicable. The sensitivity of each portfolio to different risk factors is assessed for consistency with the general macro view that the team has developed as part of the top down process.
Approach Long
Asset Class Fixed Income
Geographic Focus Emerging Markets
EM Local Currency Rates JPM GBI-EM Global Diversified
EM Hard Currency Debt JPM EMBI Global
EM Debt Total Return NA

The indices listed are appropriate benchmarks for the Strategies.

Related content

Don't Get Carried Away by Emerging-Market Corporate Debt June 2021

Emerging-market corporate debt is a morality tale in reverse – it appears to be a beautiful swan but is, in reality, an ugly duckling.

Phil Yuhn
Run, Lira, Run: The Options Now Available for Turkey March 2021

The dismissal of Naci Agbal as the governor of Turkey’s central bank after only five months has precipitated a crisis. Applying restrictive capital controls seems the only way out.

Ehsan Bashi
The CIO Agenda: Where Next for Emerging-Market Debt? February 2021

Lisa Chua, Portfolio Manager at Man GLG, discusses the outlook for emerging-market debt and why the pandemic brought fragilities – that have been brewing for years – to the surface.

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The End of the Emerging-Market Bounce? January 2021

We believe that it is prudent to remain cautious on emerging markets for five reasons: overall debt burdens; Chinese credit impulse; deteriorating conditions in developed markets; currencies; and positioning.

Guillermo Ossés
Is Quantitative Easing Suited for Emerging Markets? August 2020

Is quantitative easing suited to emerging markets? Can it actually do more harm than good? Can the perfect dose of QE be calibrated?

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The Shape of the Recovery July 2020

A debt overhang, misplaced faith in central banks and no global V-shaped recovery are likely to leave emerging-market sovereign assets exposed to substantial downside risks, either through inflation or default.

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Big Fish, Small (Liquidity) Pond: Emerging-Market Debt ETFs and Why Active Managers Should Worry June 2020

Will active managers investing in emerging-market debt heed the alarms set off by the March selloff? Their actions say no…

Phil Yuhn
Go Hard or Go Home? A Case for (Select) Hard Currency Emerging-Market Debt June 2020

Covid-19 is likely to winnow out the weak from the strong in emerging markets. Those countries with lower external debt burdens and floating FX regimes may be better prepared to weather the coming storm.

Lisa Chua
The Mask Comes Off: The Impact of Covid-19 on Emerging-Market Debt March 2020

Ironically, Covid-19 is unmasking the underlying weakness in emerging-market debt.

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Keeping Our Heads Down: Why We Remain Defensive on Emerging-Market Debt November 2019

Reasons why we still have a defensive stance on emerging-market debt: current account performance in EM, the crowding out factor and US inflation.

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Is the DM Rates Rally Due a Reversal? June 2019

We believe the DM rates rally from end May/early June is likely to be reversed for three reasons.

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EMD H2 Outlook: a 1990s Déjà Vu? May 2019

Just like in the late 1990s (following the US tightening of 1994), we believe EMD will get stressed over the coming years.

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The Fed's U-Turn: Overtightening Down the Road? February 2019

The Federal Reserve has discarded a promise to keep raising rates. Are we in for overtightening down the road?

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The Dangers of Short-term Memory August 2018

Taking a closer look at the state of markets in 2018 and lessons investors should’ve learned in 2008, but may have forgotten (or chosen to ignore).

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EMD, Meet the Debt Ceiling - Again February 2023

Our research suggests that the recent market rally has been driven by a liquidity injection from the US Treasury; what happens when debt-ceiling machinations reverse that flow?

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Credit Outlook Q2 2023: Gradually, Then Suddenly April 2023

We expect dispersion to accelerate as growth slows and winners and losers bifurcate, so favour remaining selective in our credit exposure.

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Views From the Floor - An Investor’s Practical Guide to the Debt Ceiling 23 May 2023

Three investments that could struggle amid debt-ceiling negotiations; structural answers to the VIX puzzle; and what comes next for Turkey.

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Views From the Floor - Same Old Playbook for Turkey 13 June 2023

Turkey's policy hopes dashed as Erdogan wins presidency; and could travel spend keep Europe’s luxury goods firms in a sweet spot?

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Investment Solutions

Man offers a comprehensive suite of investment solutions and formats that can be tailored and optimised to meet specific client needs. Our investment solutions offer optionality including: liquidity, control, investment restrictions, investor customisations and transparency.

Alternative investment funds
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Access to investment products and mandate solutions are subject applicable laws and regulations including selling restrictions and licensing requirements. Investment solutions listed above may not be compatible for all investment strategies and may be subject to minimum subscription requirements. Regional Funds: In additions to UCITS and AIFs registered across the EEA, a number of investment strategies are available in vehicles registered in Chile, Netherlands, Hong Kong, Japan, Singapore, South Korea and Switzerland.


One should carefully consider the risks associated with investing, whether the strategy suits your investment requirements and whether you have sufficient resources to bear any losses which may result from an investment:

Investment Objective Risk - There is no guarantee that the Strategy will achieve its investment objective.

Market Risk - The Strategy is subject to normal market fluctuations and the risks associated with investing in international securities markets and therefore the value of your investment and the income from it may rise as well as fall and you may not get back the amount originally invested.

Counterparty Risk - The Strategy will be exposed to credit risk on counterparties with which it trades in relation to on-exchange traded instruments such as futures and options and where applicable, ‘over-the- counter’("OTC","non-exchange") transactions. OTC instruments may also be less liquid and are not afforded the same protections that may apply to participants trading instruments on an organised exchange.

Currency Risk - The value of investments designated in another currency may rise and fall due to exchange rate fluctuations. Adverse movements in currency exchange rates may result in a decrease in return and a loss of capital. It may not be possible or practicable to successfully hedge against the currency risk exposure in all circumstances.

Liquidity Risk - The Strategy may make investments or hold trading positions in markets that are volatile and which may become illiquid. Timely and cost efficient sale of trading positions can be impaired by decreased trading volume and/or increased price volatility..

Concentration Risk - The Strategy invests in a limited number of investments may be held which can increase the volatility of performance.

Financial Derivatives - The Strategy will invest financial derivative instruments ("FDI") (instruments whose prices are dependent on one or more underlying asset) to achieve its investment objective. The use of FDI involves additional risks such as high sensitivity to price movements of the asset on which it is based. The extensive use of FDI may significantly multiply the gains or losses.

Leverage - The Strategy's use of FDI may result in increased leverage which may lead to significant losses.

Emerging Markets - The Strategy may invest a significant proportion of its assets in securities with exposure to emerging markets which involve additional risks relating to matters such as the illiquidity of securities and the potentially volatile nature of markets not typically associated with investing in other more established economies or markets.

Non-Investment Grade Securities - The Strategy may invest a significant proportion of its assets in non-investment grade securities (such as “high yield” securities) are considered higher risk investments that may cause income and principal losses for the Strategy. They are instruments which credit agencies have given a rating which indicates a higher risk of default. The market values for high yield bonds and other instruments tend to be volatile and they are less liquid than investment grade securities.