Aperture Emerging Debt Opportunities Q3 2023 Manager Commentary

In Short

Quarterly comment on the Aperture Emerging Debt Opportunities Fund

Aperture Emerging Debt Opportunities Fund: Commentary for Q3 2023

Quarterly Commentary
“Quand il pleut, c'est le deluge.” That’s French for when it rains, it pours. That’s what came to mind this quarter, another period when the rain not only didn’t end, it intensified.
The 3rd quarter opened robustly in July, with all EM indices rallying through month-end. But the party ended abruptly on August 1st as Fitch became the second rating agency to downgrade the U.S. to 'AA+' from 'AAA' in light of potential political infighting that could lead to a government shutdown. This surprise happened not many weeks from the Silicon Valley Bank and Credit Suisse rescues, creating more gyrations in the bond markets and left many on Wall Street feeling rates will be “higher for longer” than what many had forecasted in just the 1st quarter.

Indeed, 5-year US yields rallied from 4.36% on July 7th only to collapse to 3.95% on July 13th – low for the quarter – only to peak at 4.69% before settling in at 4.61%. Long rates rose from a low of 3.84% to 4.70%, a level not seen since 2010.


Our Core portfolio in the long duration EM bond strategy roughly matched the index this quarter. The portfolio’s average rating ended close to the benchmark’s BB+ and duration also finished close to the benchmark at 6.75 years.

 

Download the full comentary below:

Aperture Emerging Debt Opportunities Q3 2023 Manager Commentary
Picture

© Generali Investments, all rights reserved. This website is provided by Generali Investments Luxembourg S.A. (Generali Investments) and is considered as a marketing communication and financial promotion related its products and services. This website may contain information related to the activity of the following companies: Generali Asset Management S.p.A. Società di gestione del risparmio, Infranity, Sycomore Asset Management, Aperture Investors LLC (including Aperture Investors UK Ltd), Plenisfer Investments S.p.A. Società di gestione del risparmio, Lumyna Investments Limited, Sosteneo S.p.A. Società di gestione del risparmio, Generali Real Estate S.p.A. Società di gestione del risparmio, Conning* and among its subsidiaries Global Evolution Asset Management A/S - including Global Evolution USA, LLC and Global Evolution Fund Management Singapore Pte. Ltd - Octagon Credit Investors, LLC, Pearlmark Real Estate, LLC as well as Generali Investments CEE. *Includes Conning, Inc., Conning Asset Management Limited, Conning Asia Pacific Limited, Conning Investment Products, Inc., Goodwin Capital Advisers, Inc. (collectively, “Conning”).