Emerging Markets Debt Fund Posts Strong Q2 Return

The Virtus Stone Harbor Emerging Markets Debt Income Fund (SHMDX) saw a return of 5.64% in Q2 2026, outperforming the J.P. Morgan EMBI Global Diversified Index's return of 4.63%. The fund had a strong quarter with all investment-grade countries experiencing positive returns.

The largest contributors to this performance were Panama, Hungary, and Romania, which returned 4.6%, 4.3%, and 3.7% respectively.

Hard currency corporate debt country overweights in Argentina, Colombia, and Saudi Arabia contributed positively to the fund's return, while Mexico and Indonesia's country overweights detracted from it.