Emerging Market Transition Debt Strategy

Investing at the intersection of return and impact​.
Matt Christ

Strategy overview

An integrated public and private credit portfolio, harnessing the EM transition debt opportunity.
Key features
  • Invested at the intersection of return and impact.
  • Aims to deliver attractive risk-adjusted returns by investing in corporates with credible commitments to transitioning or enabling a lower-carbon future.
  • Detailed transparent reporting based on externally validated carbon calculation methodologies.
  • Managed by an experienced EM investment team, supported by the wider fixed income platform.

Exploring the opportunity set

Matt Christ and Nazmeera Moola discuss the emerging market transition and the opportunities they’re seeing in the emerging market universe.

Transition to net-zero: the long-term EM investment opportunity


1
For the global transition to net-zero carbon, investors need to finance swathes of new infrastructure and industrial change among companies that produce the highest emissions today but have credible transition plans.

2
Emerging market companies are at the heart of this transition finance opportunity. More than 90% of emissions growth is projected to come from emerging markets, and the corporate sector is leading on the net-zero transition (ahead of governments).

3
By providing finance to these companies – at commercial rates – investors can tap into this long-term investment theme and make a real-world contribution to the global energy transition.

We believe the battle for net zero will be won or lost in the emerging market corporate sector
Matt Christ

Portfolio Managers

Matt Christ
Portfolio Manager

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General risks. Past performance is not a reliable indicator of future results, losses may be made.

Specific risks. Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income. Derivatives: The use of derivatives is not intended to increase the overall level of risk. However, the use of derivatives may still lead to large changes in value and includes the potential for large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss. Emerging market (inc. China): These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems. Equity investment: The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company. Geographic/Sector: Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean that, in certain market conditions, the value of the portfolio may decrease whilst more broadly-invested portfolios might grow. Reference currency hedging: Aims to protect investors from a decline in the value of the reference currency only (the currency in which accounts are reported) and will not protect against a decline in the values of the currencies of the underlying investments, where these are different from the reference currency. Difference between the currencies of the underlying investments and the reference currency may cause loss when the reference currency rises against the share class currency. Such hedging will not be perfect. Success is not assured.

Important information
This communication is provided for general information only should not be construed as advice.

All the information in is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessary reflect those of Ninety One.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon.

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