An emerging markets total return strategy affords access to fast‑growing economies and relatively inefficient markets. These dynamics typically fuel fruitful conditions for active management through wider credit spreads and potentially stronger risk-return profiles relative to developed market investments of comparable credit quality. Operating across geographies, currencies and credit environments, the strategy can provide developed market diversification in several roles.
Explore the role emerging markets debt can play in portfolios today.
RISKS
Counterparty Risk: Risk of material investment exposure through contracts with a third party.
Credit Risk: The value of debt securities may be adversely impacted by the erosion in the ability of the issuer to pay the amounts of interest and principal owed as they become due.
Currency Risk: The value of investments in the Fund that are designated in a currency other than the base currency for the Fund may rise and fall due to exchange rate fluctuations.
Custodial Risk: Assets which are traded in markets where custodial and/or settlement systems are not fully developed may be exposed to risk in circumstances where the custodian will have no liability.
Emerging Market Risk: The Fund invests in emerging markets, which may experience political, market, social, regulatory, and/or economic instabilities. These instabilities may reduce the value of the Fund's investments.
Sovereign Debt Risk: Sovereign debt risk is the risk that the governmental entity that controls the repayment of sovereign debt may not be able or willing to repay the principal and/or interest when due in accordance with the terms of such debt, due to factors related to its cash flow, its foreign reserves and political constraints, among others. If a governmental entity defaults, there may be few or no effective legal remedies for collecting on such debt.
Socially Responsible Investment Risk: The Fund may achieve lower returns than an equivalent fund which does not pursue a socially responsible mandate.
Please click on this PGIM Funds plc disclosure link for important information.
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