Emerging Markets Debt Collective Trust

Investment Philosophy

Logan Circle Partners L.P. (the "Adviser") believes that the fixed income markets are efficient with respect to interest rate risk, but that bond markets regularly misprice securities that are exposed to country, currency and credit risks. The Adviser seeks to identify companies in developing countries that are believed to be undervalued and have attractive or improving fundamentals.

Investment Process

The Adviser analyzes the global economic environment and its impact on emerging markets. The Adviser will normally invest the Fund’s assets in local currency and hard currency (such as U.S. dollars) emerging markets sovereign and corporate debt issues. The investments will range in maturity from overnight to 30 years or more and will not be subject to any minimum credit rating standard. The Adviser may invest in debt securities that are rated below investment grade (commonly known as “junk bonds”), including defaulted securities.

Under normal market conditions, the Adviser anticipates that:

  • U.S. dollar denominated sovereign exposure should range between 25% and 100%
  • Emerging Market corporate exposure should range between 30% and 70%
  • Local currency sovereign and corporate exposures should range between 5% and 40%; and
  • Developed markets exposure should range between 0% and 10%.
  • Less than 10% of the assets will be in cash and cash equivalents.

The Adviser may, when or if available, use certain strategies, including the use of derivatives, to seek to protect the fund from what are believed to be overvalued currencies or to take advantage of what are believed to be undervalued currencies. The Adviser will use cross currency hedges for hedging purposes or to establish an active exposure to the exchange rate between any two currencies. The Adviser generally considers selling a security when it determines that the holding no longer satisfies its investment criteria.

SEI Trust Company (the "Trustee") serves as the Trustee of the Funds and maintains ultimate fiduciary authority over the management of, and the investments made, in the Funds. The Funds are part of a Collective Investment Trust (the "Trust") operated by the Trustee. The Trustee is a trust company organized under the laws of the Commonwealth of Pennsylvania and wholly owned subsidiary of SEI Investments Company (SEI). 

The Logan Circle Partners Master Collective Investment Trust is for investment by “Eligible Plans” (as that term is defined in the Declaration of Trust for the Trust) only (generally retirement plans that are tax-qualified under Section 401(a) of the Internal Revenue Code and governmental plans established pursuant to Section 414(d) of the Internal Revenue Code).  The information is provided solely for use by a fiduciary or service provider of such plans, and cannot be used or relied upon by any other person or entity.

All investing is subject to risk, including the possible loss of principal. Bonds and bond funds are subject to interest rate risk and will decline in value as interest rates rise. High yield bonds involve greater risks of default or downgrade and are more volatile than investment grade securities. In addition to the normal risk associated with investing, international investments may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. These risks are especially high in emerging markets.