When J.P. Morgan introduced an index of dollar-denominated sovereign bonds, issued by emerging-market countries in the 1990s, it consisted of only eight countries. Since then, more and more countries have been included, and indices for corporate bonds, local-currency-denominated bonds, currencies, etc., have been launched. With a total of 80 countries, one can no longer talk about an investment niche. Dr. Nicolas Schlotthauer, Head of Emerging Markets Sovereign Bonds at Deutsche Asset Management, expects the asset class to grow further, as more and more issuers are included in the index.
Sources: J.P. Morgan, Deutsche Asset Management Investment GmbH; as of 10/18/17