Emerging Markets

Asset class update: Emerging Market Investment Grade Corporate Debt

With its higher yields and lower duration than US investment grade debt for comparable credit quality, the EM asset class may be more relevant than ever. Find out how this fast-growing and increasingly diverse investment universe can provide a high-grade complementary solution in the search for higher yields.

Apr 26, 2022

10 minutes

Victoria Harling
Alan Siow
With its higher yields and lower duration than US investment grade debt for comparable credit quality, the EM asset class may be more relevant than ever. Find out how this fast-growing and increasingly diverse investment universe can provide a high-grade complementary solution in the search for higher yields.

Investment grade corporate bonds issued by emerging market companies offer investors a compelling way to meet their objectives without taking on excessive risk. The market spans a diverse range of regions and companies – often market-leading global businesses.

In this update on the asset class, Portfolio Managers Victoria Harling and Alan Siow share their views on the relevance in the current environment, thanks to higher yields, lower duration and less leverage than US investment grade debt for comparable credit quality. They also discuss EM company fundamentals in the context the pandemic and war in Ukraine and the implications of recent events and market volatility for investors.

Read the paper

Specific risks

Emerging market: 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. Investments carry a risk of capital loss.

General risks

The value of investments, and any income generated from them, can fall as well as rise. Where charges are taken from capital, this may constrain future growth. Past performance is not a reliable indicator of future results. If any currency differs from the investor's home currency, returns may increase or decrease as a result of currency fluctuations. Investment objectives and performance targets are subject to change and may not necessarily be achieved, losses may be made.

Victoria Harling
Portfolio Manager
Alan Siow
Co-Portfolio Manager, All China Bond

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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