This evolving asset class has a number of unique features, including market niche and favorable tax treatment for taxable investors.
While emerging markets have historically been viewed as a high-beta play on economic growth, today they deserve a diversified investment approach similar to that used for developed markets, particularly for investors with meaningful emerging markets overweights.
A fully collateralized option-selling program has historically provided strong returns with low volatility and high liquidity. Looking ahead, we expect this to be an attractive portfolio diversifier that seeks to capture the seemingly persistent gap between implied and realized volatility.