Sovereign
Corporate
Cash
Less than 1 yr
1-3 yrs
3-5 yrs
5-7 yrs
7-10 yrs
10-20 yrs
More than 20 yrs

Credit Quality Distribution as of 06/30/2015

A
BBB
BB
Not Rated

Portfolio Details as of 06/30/2015

Total Net Assets
$9.00 M
Number of Holdings
52
Average Coupon
6.56%
Average Maturity
6.63 Years
Modified Duration
4.39 Years

Portfolio Positioning as of 06/30/2015

  • As the market continues to anticipate a gradual rise in U.S. interest rates, we believe emerging markets’ interest rates will continue to exhibit lower correlation with that of those in the United States.
  • As the U.S. Federal Reserve (Fed) moves closer to increasing interest rates, we may seek to reduce our exposure to U.S. rates using Treasury futures.
  • Most emerging-market economies are unlikely to follow Fed rate hikes in lockstep, as many emerging-market economies have just completed significant easing cycles.
  • Short-term interest rates have become increasingly attractive for carry-trades; thus, we anticipate an increase in market participants who want to take advantage of opportunities in the short end of the curve.
  • As many emerging markets’ yield curves have steepened significantly, we will seek to take positions in anticipation of future yield-curve flattening. Specifically, we are targeting positions in countries that exhibit higher correlation to the United States, such as Mexico and Poland. 
Currency Assets
Mexico 12.4%
Brazil 11.5%
Turkey 11.4%
Indonesia 10.6%
Malaysia 9.0%
Poland 8.7%
South Africa 8.6%
Colombia 6.8%
Thailand 6.4%
Russia 5.3%
Hungary 4.6%
Romania 2.5%
Chile 2.1%
South Korea 2.0%
Nigeria 1.3%
Peru -0.4%
Philippines -1.1%
Australia -1.7%
Singapore -2.0%
Fund Dividends & Cap Gains next tab

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