Aperture Investors Launches the Aperture Emerging Debt Opportunity Fund Led By Peter Marber
Aperture Investors, an asset manager and part of the Generali Investments ecosystem, today announced the availability of the Aperture Emerging Debt Opportunity Fund (Ticker: EMDPAYH LX Equity). The Fund intends to represent a portfolio of majority long duration fixed income through a basket of debt securities, cash and cash equivalents across more than 75 emerging market economies.
A portion of the Fund was seeded by Generali and is available to investors in certain countries within the European Union.
The objective of the Fund is to generate returns in excess of the JP Morgan Emerging Markets Bond Index Global Diversified ("EMBI Global Diversified Index") by investing, either directly or indirectly, in different financial asset classes such as cash and derivatives in debt, FX, indices, and interest rates, with a focus on Emerging Markets.
The long duration strategy aims to seize the opportunities generated by the approaching end of the rate hike cycle and the normalization of the US yield curve, which has shifted dramatically over the past 18 months. Additionally, the total return for emerging markets external debt over the last three decades has exceeded that of US Treasuries and US High Yield bonds.
"Emerging markets have continued to have GDP growth alongside lower public debt ratios compared to developed countries. That, combined with steadily improving credit quality in emerging markets, creates what we believe to be an attractive fixed income opportunity," said Dr. Peter Marber, Aperture's Head of Emerging Markets and Portfolio Manager. "Looking at the past, when US dollar yields have peaked, subsequent periods have proved very positive for emerging market returns: credit spreads often tighten, currencies appreciate and equity markets rally, and the new strategy intends to focus on thse opportunities."
Marber and his team manage the Fund. He is a globally recognized authority on emerging market economies. Prior to Aperture, Marber headed emerging market businesses for Loomis, Sayles & Company, HSBC Global Asset Management, and was a partner and president of the emerging market subsidiaries at Wasserstein, Perella & Co. He also has a long history teaching and has held positions at Columbia University, Johns Hopkins University, Harvard University, and New York University.
The value-oriented fixed-income strategy will invest in corporate, sovereign, and quasi-sovereign debt securities of selected emerging markets. A core tenet of the Fund's investment philosophy is the belief that emerging market bonds can offer more attractive risk-adjusted returns than many developed market credits. This approach is an extension of the strategies Marber has managed for more than three decades and, over a market cycle, the Fund will aim to produce equity-like returns with bond-like volatility through seeking to identify the best risk-adjusted returns across dozens of emerging market economies.
"From our seat, we see tremendous anticipation for another emerging markets strategy," said Peter Kraus, Chairman and CEO, Aperture Investors. "Our aligned fee model and belief in restricting capacity will further differentiate this fund. Higher expected alpha requires focus on bonds of lower credit quality, and restricting the levels of assets will allow us to execute more liquid credit strategies and concentrate on investable geographies."
In addition to the Emerging Debt Opportunities Fund, Aperture's Global Emerging Markets Team also manages the New World Opportunities Fund and is supported by firmwide resources.
"We are delighted to further strengthen Aperture Investors' investment solutions offering. In recent months, most of Aperture's strategies have matured a three-year track record and are now enriched by this new approach, leveraging on the team's distinctive skills in emerging markets. Aperture Investors Emerging Debt Opportunity Fund will seize the potential offered by these regions today, leveraging on the historical low correlation of emerging markets debt with other asset classes, thus providing possible diversification benefits and the potential for attractive returns," said Tim Rainsford, CEO of Generali Investments Partners S.p.A. Società di gestione del risparmio.
Aperture's mission is outperformance and is focused on identifying portfolio managers who can consistently beat their benchmarks. Since inception, Aperture has steadily grown product breadth and as of February 28, 2023, manages $4.045 billion across its investment strategies diversified across asset classes and geographies-each managed by a dedicated investment team-with distribution across the US, Europe and Middle East.
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