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.

$11.6B

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 31 March 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

 

  • Michael Cirami, CFA

    Co-Director of Emerging Markets,
    Portfolio Manager

    (Central and Eastern Europe, Middle East, and Africa)

    Full bio —
  • Michael O'Brien, CFA

    Co-Director of Emerging Markets,
    Director of Emerging Markets Trading

    Full bio —
  • John Baur

    Director of Portfolio Analysis,
    Portfolio Manager

    (Latin America and Asia)

    Full bio —
  • Marshall Stocker, PHD, CFA

    Director of Country Research,
    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)*
$2,806 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)*
$1,775 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)*
$204 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)*
$130 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)*
$121 Million
Inception Date
1 April, 2018

*As of 30 June 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)*
$513.5 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)*
$163.4 Million
Inception Date
25 September, 2019

*As of 30 June 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

Videos

View Now

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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Egypt

We are positive on Egypt’s local currency sovereign debt (Dec 2020). The country has done an impressive job of stabilising its economy since 2016 under the IMF programme. Currency liberalisation, the lifting of subsidies and fiscal consolidation – helped by high nominal GDP growth – has put the country’s budget deficit and debt on a declining trajectory, and in a better position to deal with the impact of COVID-19. Prior to the COVID-19 outbreak, the country seemed on the cusp of further reforms: reducing the state role in the economy and removing structural impediments to private sector investments. In response to the crisis, the authorities have recommitted themselves to fiscal prudence, and we welcome the fact that they moved swiftly to plug their external financing needs following the pandemic-related hit to tourism receipts and portfolio outflows from local debt instruments. The country still needs to implement structural reforms – especially in terms of the army’s role in the private sector – but it is moving in the right direction. Good policy decisions have seen investment flows returning to local currency debt instruments. The country faces a number of ESG challenges, but there have been some positive developments in recent years: modernisation of the social security net and initiatives to reduce air pollution in Cairo, for example.

As of 12/31/2020. 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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Ukraine

We are positive on Ukraine’s local currency-denominated debt and also see selective value in hard currency sovereign and corporate bonds. Relative to the widely-used EM local currency benchmark index, J.P. Morgan GBI-EM Global Diversified Index, Ukraine is an off-benchmark country. Ukraine remains a conviction position: prices for the local debt are still extremely attractive with real yields near double digits. That said, we note that the country’s exciting structural reform plans have stalled. This is not an atypical situation in the emerging markets, since country reforms almost never move forward in a straight line, and COVID-19 has certainly created challenges for many countries, including Ukraine. Macro fundamentals in Ukraine are relatively good, but policymakers must contend with powerful oligarchic vested interests which exercise control over a substantial portion of the economy, corruption and abuse of office by public officials, and overreach of government into the economy if they want to push forward with reforms.

As of 12/31/2020. 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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Turkey

We have a slightly positive view – but not a strong one – on Turkey. Previously, we had highlighted our negative stance on the country on the grounds of its challenging economic, political and geopolitical position. In short, Turkey had strayed quite far away from the better economic and monetary policy that had been implemented under President Recep Tayyip Erdogan in his early years in power nearly two decades ago. In November 2020, there were some positive developments for market confidence. The first was the President’s dismissal of central bank governor Murat Uysal (amid fears of a looming balance of payments crisis) and replacement with a former finance minister Naci Agbal – a move seen as indicative of more orthodox monetary policy going forward. The second positive was a November speech by the President in which threw his support behind the new central bank governor and economy czar, pledged a policy mix more attentive to expectations of foreign investors and signalled that he would take a step back from his central role in monetary policy matters. For now, Turkish policy makers have taken a significant step in the right direction: the central bank has hiked the policy rate (the first hike in two years), restrictions on foreign currency swaps have been eased, foreign exchange and gold transaction fees have been lowered and taxes on Turkish lira deposits have been cut.

As of 12/31/2020. 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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South Africa

We continue to view South Africa in a negative light. Before the COVID-19 outbreak, fiscal metrics in Sought Africa were already poor. Since then, the debt situation has become even more precarious. In its consolidated mid-year budget update announced at the end of October (for the fiscal year ending March 2021), the consolidated budget deficit is now forecast to be 15.7% of gross domestic product (GDP), with debt-to-GDP jumping to 83%. That’s with a fiscal stimulus of 10% of GDP in the 2020/21 fiscal year. Although the Treasury has announced a plan to start fiscal consolidation in 2021, we remain sceptical of the ruling ANC government’s ability to stem the risk of a looming sovereign solvency crisis. Dysfunctional power dynamics, a poor track record on delivering previously promised reforms, anaemic growth rates and staggering levels of unemployment are among the reasons for our scepticism. Aside from governance issues (a long history of worsening corruption taints the political landscape), the country remains the most economically unequal in the world (moreso than when apartheid ended).

As of 12/31/2020. 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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Michael Cirami, CFA

Co-Director of Emerging Markets, Portfolio Manager
(Central and Eastern Europe, Middle East, and Africa)

Michael Cirami 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 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. Michael focuses on emerging Europe, the Middle East and Africa. He joined Eaton Vance in 2003.

Michael began his career in the investment management industry in 1998. Before joining Eaton Vance, he worked at State Street Bank in Boston, Luxemburg and Munich, and BT&T Asset Management in Zurich.

Michael earned a B.S., cum laude, from Mary Washington College and an MBA with honors from the William E. Simon School at the University of Rochester. He also studied at WHU Otto Beisheim School of Management in Koblenz, Germany. He is a member of the CFA Society Boston, the Boston Committee on Foreign Relations and the Ludwig von Mises Institute. He also serves as a board member and chairman of the investment committee of the Boston Civic Symphony and the University of Mary Washington Foundation. Additionally, he is on the board of overseers for the New England Conservatory. He is a CFA charterholder.

Michael’s commentary has appeared in The Wall Street Journal, Barron’s, Bloomberg and Reuters. He has been a featured speaker at Schwab, Bloomberg European Debt Crisis and Standard Chartered forums.

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John Baur

Director of Portfolio Analysis, Portfolio Manager
(Latin America and Asia)

John Baur is a vice president of Eaton Vance Management, director of portfolio analysis and portfolio manager on Eaton Vance’s emerging markets team. He is responsible 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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Michael O'Brien, CFA

Co-Director of Emerging Markets, Director of Emerging Markets Trading

Michael O’Brien is a vice president of Eaton Vance Management, co-director of emerging markets and director of emerging markets trading. He is responsible for leading the emerging markets team with investment professionals based in Boston, Washington, D.C., London and Singapore, as well as overseeing a team of traders operating 24 hours per day in global markets. He and his team are responsible for trade execution as well as gathering intelligence on markets and new instruments. He joined Eaton Vance in 2005.

Michael began his career in the investment management industry in 2000. Before joining Eaton Vance, he was affiliated with Wellington Management Company. Previously, he was affiliated with Brown Brothers Harriman.

Michael earned a B.A. from Colby College and an M.S. from the Carroll School of Management at Boston College. He is a member of the CFA Society Boston and is a CFA charterholder.

Michael’s commentary has appeared in The Wall Street Journal, Financial Times, Risk Magazine, Bloomberg, Reuters, Forbes Magazine, Euromoney, International Financing Review and Pensions & Investments.

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Marshall Stocker, PHD, CFA

Director of Country Research, Portfolio Manager

Marshall Stocker is a vice president of Eaton Vance Management, director of country research and portfolio manager on Eaton Vance’s emerging markets team. As a portfolio manager, he is responsible for buy and sell decisions, portfolio construction and risk management for assets in emerging and frontier markets. As director of country research, he leads the emerging markets team focused on analyzing country-level political-economic policies. 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.