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Article: Emerging market bonds thrive despite volatility.
- Article from:
- Investment Adviser
- Article date:
- May 29, 2006
CopyrightCOPYRIGHT 2006 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Despite recent buffeting, emerging market bonds show good volatility-adjusted performance, according to a fixed-income manager at Fabien Pictet.
Julian Jacobson, manager of the AGBP78m Fabien Pictet Global Emerging Markets Bond fund, said emerging market bonds were more volatile than developed market bonds. Allowing for this, the emerging bonds performed no differently to their developed-market companions.
He said: "If you get excess downside volatility relative to the upside then you are in a bad market. But if the upside and downside volatility is the same then its just a question of how much volatility you can take."
This fact was not ...