Nuveen, the USD1.3 trillion asset manager and investment manager of TIAA, has launched its Global Emerging Market Debt strategy for investors across Europe and Asia Pacific.
The strategy seeks to generate attractive risk-adjusted performance and compelling relative results versus its benchmark using a broad, diverse opportunity set of emerging market debt securities.
Lead manager will be Katherine Renfrew, Head of EM Corporates and Quasi Sovereigns, alongside co-manager John Espinosa, Head of Sovereigns, supported by a 17-strong team of EM debt specialists integrated within Nuveen’s 200+ team of fixed income professionals. Nuveen currently manages over USD12 billion of EM fixed income assets.
The team invests across the full spectrum of emerging markets debt opportunities with a primary focus on hard currency denominated securities across sovereign, quasi- sovereign and emerging markets corporate issuers. Alpha is sought primarily through highly opportunistic country allocations and security selections.
The firm writes that the launch is the latest milestone in the growth of Nuveen’s USD588 billion private and public fixed income platform across Europe and Asia following the launch of its Global impact strategy in October 2024.
Katherine Renfrew, Head of EM corporates and Quasi sovereigns, says: “Emerging markets are heterogeneous, complex and dynamic. Driving optimal country-level exposure is critical to delivering consistent, incremental alpha. Furthermore, we believe that complementing sovereigns with a diverse selections of emerging market corporates is key to enhancing risk-adjusted returns.
“The first quarter of 2025 has undoubtedly been noisy across global fixed income markets. The backdrop for EM sovereigns remains healthy with no obvious defaults on the horizon and a more positive skew to credit quality with upgrades outweighing downgrades in comparison to the tough years the market faced from 2021 to 2023.
“EM sovereign and corporate issuance remains strong and since we expect capital markets to remain open and US rates to stay rangebound, experienced international investors can navigate the challenges of rising tariff policies and evolving geopolitical developments. Many EM corporates, particularly those in stable or reforming markets, continue to thrive, offering attractive and competitive spreads and returns relative to investment grade and high yield names in the US.”
