Jupiter Global Emerging Markets Short Duration Bond

The Jupiter Global Emerging Markets Short Duration Bond fund is a ‘go anywhere’ short duration bond strategy, designed for any point in the cycle. It is a great way for investors to gain exposure to the yield premium offered by EMD, while also limiting volatility and drawdowns.


Flexibility: The fund can invest in both sovereign and corporate bonds, giving it the flexibility to look for value across the whole EMD spectrum.


Limited volatility: The team’s risk aware approach and focus on limiting downside has helped to limit what could have been much larger drawdowns, and it has put the fund in a strong position relative to many of its peers.


Limited duration and credit risk: The fund’s average effective duration will not exceed three years, and we never use derivatives to manage duration – the fund’s duration is simply the average duration across all bonds held in the portfolio. In terms of credit risk, while the fund can invest in lower-rated bonds, its average credit rating will not fall below BB2.


Use of CDSs and local currency hedging: The team have the ability to add protection effectively through credit default swaps (CDSs) and hedges against local EM FX.

2 Fund manager restrictions, not fund restrictions.

Jupiter Global Emerging Markets Corporate Bond

Emerging market corporate bonds are an often-underappreciated part of the emerging market debt landscape for investors used to focusing on sovereign debt. In fact:


  • Corporates have had better risk-adjusted returns than sovereigns over the last decade
  • The corporate market is around twice the size of the sovereign market
  • The corporate index has a higher investment grade allocation than sovereign
  • EM credits pay a premium over developed market, which in many cases is not justified
  • The corporate market is incredibly diversified across sectors and geographies
  • EM credits almost always offer a higher spread than their sovereign equivalent for the same rating
Why Jupiter for Emerging Market Credit?

The Jupiter Global Emerging Markets Corporate Bond fund provides focused exposure to a highly diversified EM credit market, a key growth area over the next decade.


Focusing on identifying strong bottom-up stories: The team identify companies with strong fundamentals that are trading at attractive valuations.


Adopting an all-weather approach: The team seek to deliver a consistent yield through the market cycle to offer a core, long-term portfolio holding.


Being risk aware: The team use top-down macro insights to help reduce drawdown and ensure they are paid for the risk we take.