Objective

The Barings Emerging Markets Local Debt Fund seeks to achieve excess returns over the J.P. Morgan Global Bond Index Emerging Markets Global Diversified (GBI-EMGD).

Strategy

The Fund seeks to achieve both capital appreciation and income. The portfolio management team combines quantitative models and macroeconomic analysis with bottom-up sovereign research to identify economic cycles and economic competiveness across a wide range of emerging market countries. The economic cycle is considered to be the key determinant of interest rates and competitiveness the key driver of currencies.

Who Should Invest

The Fund is designed for investors seeking a strategy that targets long-term total return through investment in a diversified portfolio of EM local currency-denominated debt.

Risks

The value of investments and the income they provide can fall as well as rise and investors may not get back the amount originally invested. The Fund invests in markets where economic and regulatory risk can be significant. The Fund may hold assets that are not always readily saleable. The Fund may have to lower the selling price, sell other investments or forego another more appealing investment opportunity as a result. The Fund may use derivatives for investment purposes. These are complex instruments that carry the risk of causing increased volatility in the value of the Fund.