EMD was at the top of most investor surveys heading into 2021, but we have seen negative performance from the asset class so far this year. However, this volatility has been driven entirely by US interest rates, and the fundamental tailwinds behind EMD are still there, says Alejandro Arevalo, Head of EMD. The asset class looks very attractive compared to developed market fixed income, including high yield. Alejandro and his team believe it’s a great opportunity to make an allocation for the long term.