Emerging Markets Debt

World-class capabilities and reach

Eaton Vance ventures beyond the limited coverage of many emerging markets debt strategies, offering investors access to one of the broadest spectrums of investable opportunities in this asset class.

$11.5B

AUM (US$) in
Emerging Markets Debt 1

100+

Countries covered
by research

80+

Countries with
direct trading

 

At a Glance

  • A diverse, liquid opportunity set

    EM debt has come of age as a mainstream asset class, offering investors a large, diverse and liquid opportunity set and healthy markets in credit default swaps, options and derivatives. At the start of 2020, total outstanding EM debt is around US$15T, excluding China.

  • Active management can add value

    Benchmark index universes do not represent the true investable universe. Active managers with deep research and trading capabilities can theoretically enhance risk-adjusted returns by venturing outside benchmark index universes and exploiting a broader opportunity set.

  • An extensive EM debt capability

    Eaton Vance's Emerging Markets Team has a 40+ strong investment team covering over 100 developing countries and local markets trading capabilities across more than 80 developing countries. This extensive capability allows the team to exploit the entire investment opportunity set, including under-researched, off-benchmark markets.

  • A time-tested approach

    Eaton Vance has a long history in this asset class weathering through many different conditions. Our success is largely due to high quality, in-depth country and security analysis.

  • Robust Strategies

    Eaton Vance offers a range of EM debt strategies that capitalise on the team's breadth of investment universe and depth of country-level research. These strategies have historically generated excess return in a risk-aware fashion, leading to high information ratios relative to peers.

    1 Total assets managed by the Emerging Markets Investment Team as of 30 September 2021. Assets are primarily invested in emerging markets debt but also includes some developed markets and equity exposure held in the team’s global unconstrained strategies.

 

Our Edge: World-Class Capabilities & Reach

With deep research on more than 100 developing countries, and local markets trading capabilities in over 80 countries, few managers can match Eaton Vance's extensive global reach.

Click the 4 flags for examples of perspective overviews.

 

A Skilled Emerging Markets Team

  • 40+

    Investment experts

  • 9

    Portfolio managers

  • 22

    CFA charterholders

  • 12

    Trading & operations specialists

 

  • John Baur

    Co-Director of Emerging Markets,
    Portfolio Manager

    Full bio —
  • Marshall Stocker, PHD, CFA

    Co-Director of Emerging Markets,
    Portfolio Manager

    Full bio —
  • Matthew Murphy, CFA, CAIA

    Senior Institutional Portfolio Manager

    Full bio —
  • Bradford Godfrey, CFA

    Director of Alternative and Asset Allocation Strategies,
    Institutional Portfolio Manager

    Full bio —
 

Our Emerging Markets Debt Offerings

Each of our offerings aim to deliver attractive risk-adjusted returns relative to a benchmark index and industry peers over a market cycle. Our strategies seek to operate with as much flexibility as possible across the full spectrum of investment opportunities and focus on country-level analysis in conjunction with selection. In addition, our team is able to work with clients to customise solutions based on their specific needs and objectives.

Overview

Strategy & Focus
AUM (US$)*
Inception Date
Strategy Name
Eaton Vance Emerging markets
Local Income
Focus

Local currency-denominated debt

AUM($US)*
$2,739 Million
Inception Date
1 July, 2007
Strategy Name
Eaton Vance Emerging markets
Debt Opportunities
Focus

Blend of H/C & L/C, incl. corporates

AUM($US)*
$2,088 Million
Inception Date
1 April, 2013
Strategy Name
Eaton Vance Emerging Markets debt
Hard Currency Short Duration
Focus

Hard currency-denominated debt with a
short duration approach

AUM($US)*
$201 Million
Inception Date
1 September, 2015
Strategy Name
Eaton Vance Emerging Markets debt
Hard Currency
Focus

Hard currency-denominated debt with a neutral duration

AUM($US)*
$119 Million
Inception Date
1 May, 2018
Strategy Name
Eaton Vance Emerging Markets debt
Corporate Credit Opportunities
Focus

Concentrated, best-ideas approach, seeking superior
risk-adjusted returns relative to the benchmark

AUM($US)*
$130 Million
Inception Date
1 April, 2018

*As of 30 September 2021.

Strategy Details

EATON VANCE
EMERGING MARKETS DEBT

Local Income

+ Strategy Profile
EATON VANCE
EMERGING MARKETS DEBT

Opportunities

+ Strategy Profile
EATON VANCE
EMERGING MARKETS DEBT

Hard Currency
Short Duration

+ Strategy Profile
EATON VANCE
EMERGING MARKETS DEBT

Hard Currency

+ Strategy Profile
EATON VANCE
EMERGING MARKETS DEBT

Corporate Credit Opportunities

Contact Us

Overview

Information relating to the Eaton Vance Emerging Markets Local Income Fund provided here is intended to be accessed only by investors in the following jurisdictions: UK, Ireland, Austria, Finland, Germany, Iceland, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden and Switzerland. Please refrain from accessing this information if you are not located in any of the aforementioned jurisdictions.

Information relating to the Eaton Vance Emerging Markets Debt Opportunities Fund provided here is intended to be accessed only by investors in the following jurisdictions: Finland, Germany, Iceland, Italy, Spain, United Kingdom, Ireland, Sweden, Netherlands, Luxembourg, France, Austria and Norway. Please refrain from accessing this information if you are not located in any of the aforementioned jurisdictions.

Strategy & Focus
AUM (US$)*
Inception Date
Strategy Name
Eaton Vance Emerging markets
Local Income Fund
Focus

Local currency-denominated EM sovereign debt

AUM($US)*
$442.1 Million
Inception Date
1 February, 2018
Strategy Name
Eaton Vance Emerging markets
Debt Opportunities Fund
Focus

Local and external, sovereign and corporate exposures

AUM($US)*
$342.1 Million
Inception Date
25 September, 2019

*As of 30 September 2021.

Fund Details

EATON VANCE
EMERGING MARKETS

Local Income

+ Fund Fact Sheet
EATON VANCE
EMERGING MARKETS

Debt Opportunities

+ Fund Fact Sheet
 

Insights & Resources

Monthly Market Monitor

Explore

Emerging Markets Debt Monitor

Browse

Insights

Read Articles

 

Where possible the Strategies/Funds seeks to take into account ESG factors into their research and decision making, however, the Strategies/Funds noted herein are classified as an Article 6 Strategy/Fund of the EU Council Disclosure Regulation (2019/2088).

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Hungary

The Hungarian economy remains in a relatively good position, with a brisk recovery in business activity this year following the contraction stemming from the pandemic’s onset last year in 2020. A robust labour market and high household savings should sustain a pattern of strengthening consumption expenditure in the remainder of 2021. Fiscal policy, which acted as a key support to the private sector throughout the pandemic, will likely remain loose, as the recovery continues and the 2022 elections approach. The government projects a 7.5% of GDP budget deficit in 2021, against 8.1% last year. Public debt stands at around 80% of GDP, but is manageable with roughly fourth-fifths of the total liabilities denominated in the Hungarian forint. With the central bank starting to raise rates and Hungary’s external accounts appearing sound, support for the forint appears strong. Hungary is eligible for up to about US$8.5 billion in EU grants under the Recovery and Resilience Fund, but their prerequisite national recovery plan has not yet been approved by EU officials amid concerns related to rule of law and corruption. On balance, Hungary’s economic outlook is brightening, but some political risks remain.

As of September 1, 2021. The views expressed are those of the EM team and are current only through the date stated. These views are subject to change at any time and Eaton Vance disclaims any responsibility to update such views. Past performance is no guarantee of future results.

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Uzbekistan

Uzbekistan has been and remains a fiscally prudent country with a focus on balanced central budgets. That said, restrictions related to COVID-19 as well as the deployment of fiscal support have led to an increase in expenditure and lower revenues, both of which we view as transitory. In 2020, the budget deficit widened by around two percentage point to an estimated 4.7% of GDP. Extra expenditure related to the pandemic amounted to roughly US$1 billion, which will be largely covered by multilateral financing. The authorities passed a substantial tax reform last year and are considering additional fiscal legislation. The economic reopening has led to the emergence of twin deficits on the back of significant investment spending. However, we do not view the situation as a long-term risk given the underlying reforms, fiscal conservatism and the central bank’s sizable holdings of foreign reserves. The Ministry of Finance and the central bank are coordinating policies with a focus on prudent management to stabilise the macro economy. A noteworthy development in 2021 has been the renewed push towards privatisation of state-owned enterprises. All in all, we view Uzbekistan as a refreshing reform story within emerging markets.

As of September 1, 2021. The views expressed are those of the EM team and are current only through the date stated. These views are subject to change at any time and Eaton Vance disclaims any responsibility to update such views. Past performance is no guarantee of future results.

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Uganda

In May 2021, President Yoweri Museveni began a sixth term in office following elections that were marred by violence, voter suppression and allegations of electoral fraud. Museveni’s inauguration took place against the backdrop of resurgent COVID-19 infections. In response, Uganda moved swiftly to impose tight restrictions in June 2021. In addition to the human impact, pandemic-related spending and revenue shortfalls caused the budget deficit to widen to 9.9% of GDP, a multi-year peak that surpassed the 8.6% annual target for fiscal year 2020/2021. The government has an ambitious fiscal consolidation plan that aims to reduce the deficit to 2.3% of GDP by fiscal year 2025/2026. Although the public debt to GDP ratio has risen sharply to 51.5% in 2021 from 37.3% in 2019, levels still appear sustainable. An IMF agreement and support from the World Bank should help to alleviate balance of payments weaknesses related to falling receipts from foreign trade and investment. Elsewhere, subdued price pressures and ample spare capacity have allowed the central bank to ease monetary policy considerably, which should support stronger economic activity ahead. That is a positive, but Uganda is not entirely out of the woods and longer term the country may see political tensions come back to the fore.

As of September 1, 2021. The views expressed are those of the EM team and are current only through the date stated. These views are subject to change at any time and Eaton Vance disclaims any responsibility to update such views. Past performance is no guarantee of future results.

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Sri Lanka

Sri Lanka, a one-time investment darling within emerging markets, faces significant economic challenges today. Although economic activity is expected to rebound strongly this year following a 4.6% contraction in 2020, the deteriorating fiscal situation continues to weigh on the country’s outlook. The public debt-to-GDP stock stands at 105%, with an interest expense-to-revenue ratio of around 50%. The government, which drew down central bank reserves to pay a US$1 billion bond in July 2021, believes that default can be avoided. However, Sri Lanka’s debt repayment schedule remains onerous and the country did not strike a new agreement with the IMF after its last deal expired in June 2020. Foreign exchange holdings are low at levels providing around three months of import cover. The central bank has introduced a number of interventionist measures to shore up hard-currency reserves. Until last month, it was easing rates to stimulate domestic activities. Predictably, the Sri Lankan rupee has come under pressure. The government believes a large infrastructure project will ignite a sustained recovery, but it remains unlikely that growth will be sufficient to effect a meaningful deleveraging.

As of September 1, 2021. The views expressed are those of the EM team and are current only through the date stated. These views are subject to change at any time and Eaton Vance disclaims any responsibility to update such views. Past performance is no guarantee of future results.

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John Baur

Co-Director of Emerging Markets, Portfolio Manager

John Baur is a vice president of Eaton Vance Management, co-director of emerging markets and portfolio manager on Eaton Vance’s emerging markets team. He is responsible for co-leading the emerging markets team with investment professionals based in Boston, Washington, D.C., London and Singapore, as well as for buy and sell decisions, portfolio construction and risk management for the firm’s emerging markets strategies. He joined Eaton Vance in 2005.

John began his career in the investment management industry in 2005. Before joining Eaton Vance, he was employed by Applied Materials in an engineering capacity, spending five of his seven years at the firm in Asia.

John earned a B.S. from MIT and an MBA from the Johnson Graduate School of Management at Cornell University.

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Marshall Stocker, PHD, CFA

Co-Director of Emerging Markets, Portfolio Manager

Marshall Stocker is a vice president of Eaton Vance Management, co-director of emerging markets and portfolio manager on Eaton Vance’s emerging markets team. He is responsible for co-leading the emerging markets team with investment professionals based in Boston, Washington, D.C., London and Singapore, as well as for buy and sell decisions, portfolio construction and risk management for assets in emerging and frontier markets. He joined Eaton Vance in 2013.

Marshall began his career in the investment management industry in 1999. Before joining Eaton Vance, he served as co-founder and managing member of Emergent Property Advisors, LLC. Previously, Marshall was a portfolio manager with Choate Investment Advisors and Sanderson & Stocker.

Marshall earned a B.S. and an MBA from Cornell University, where he was a Park Leadership Fellow, and a Ph.D. in economics at Universidad Francisco Marroquin. He is also a CFA charterholder and is conversant in German and Arabic. He is a benefactor of the Cato Institute, Foundation for Economic Education and the Atlas Network. In 2017, he became a member of the Mont Pelerin Society.

Marshall’s commentary has appeared in The New York Times, The Wall Street Journal, Barron’s, Financial Times, The Washington Post and Bloomberg. He has also been featured on Bloomberg Radio, Fox Business News and Nikkei CNBC Japan.

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Matthew Murphy, CFA, CAIA

Senior Institutional Portfolio Manager

Matthew Murphy is a vice president of Eaton Vance Management and senior institutional portfolio manager on Eaton Vance’s emerging markets team. He is responsible for covering global economic, political and market research. He also serves as a resource for existing and prospective clients, representing the group’s managed strategies and presenting the team’s views on macroeconomic and political developments in the world. He joined Eaton Vance in 2011.

Matt began his career in the investment management industry in 2002. Before joining Eaton Vance, he was affiliated with Cambridge Associates, LLC as a consulting associate. He was also affiliated with Matrix Capital Markets Group, Inc.

Matt earned a B.S. from the University of Richmond. He is a member of the CFA Society Boston and is a CFA charterholder. He holds the Chartered Alternative Investment Analyst (CAIA) designation. Matt’s commentary has been featured in Reuters and Morningstar, as well as other financial news outlets.

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Bradford Godfrey, CFA

Director of Alternative and Asset Allocation Strategies, Institutional Portfolio Manager

Bradford Godfrey is vice president of Eaton Vance Management, director of alternative and asset allocation strategies and institutional portfolio manager for Eaton Vance’s emerging markets and asset allocation teams. He is responsible for providing insights to clients and prospective clients on markets, macroeconomic and political events, and portfolio strategy and positioning. Brad also leads a team of individuals with similar responsibilities. He joined Eaton Vance in 2002.

Brad began his career in the investment management industry in 2000. Before joining Eaton Vance, he was affiliated with MFS Investment Management.

Brad earned a B.S. from the University of Richmond. He is a member of the CFA Society Boston and is a CFA charterholder. His commentary has appeared in the Financial Times, Bloomberg, InvestmentNews and numerous other leading financial media outlets.