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PGIM launches emerging market hard currency debt ESG fund

emerging market currenciesPGIM has added a sixth strategy to its emerging market debt (EMD) UCITS line-up, the PGIM Emerging Market Hard Currency Debt ESG Fund.

The fund builds on the firm’s existing Emerging Market Hard Currency Debt strategy, but has an integrated ESG framework.

It is run by senior portfolio managers Cathy Hepworth and Mariusz Banasiak.

The pair will construct a diversified portfolio of dominant hard currency opportunities across sovereign bonds, quasi-sovereign bonds and corporate bonds.

Risk-monitoring will be harnessed across industry, issuer, credit quality and liquidity profiles.

“ESG issues can materially impact the performance of investor portfolios, particularly within the underdeveloped emerging markets. By harnessing the power of our comprehensive ESG impact and climate risk assessment framework, we expect to be in a position to mitigate the risks and capitalise on the opportunities in the years ahead,” said Hepworth

“In addition, we remain optimistic on the prospects for hard currency sovereigns and corporates – which remain the most appealing segments within the EMD universe. However, we recognise differentiation is imperative as ever – particularly when faced with challenges such as increased debt burdens among sovereigns, and varying policy and fiscal consolidation efforts.”

The fund will be managed by the wider PGIM fixed income team. It is the eighth ESG UCITS strategy offered by PGIM to non-US investors. Each classifies under Sustainable Finance Disclosure Regulation (SFDR) article 8.

The PGIM Emerging Market Hard Currency Debt ESG Fund is a sub-fund of the Irish-domiciled UCITS fund umbrella, PGIM Funds plc. It will be registered in the UK and across various European jurisdictions.

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