Emerging Markets Local Currency Dynamic Debt Strategy

Helping investors tap into the long-term return and diversification potential of a richly varied investment universe.

Investing actively across a richly diverse investment universe

The Strategy aims to provide income and long-term capital growth by investing in sovereign bonds issued by emerging market borrowers.
Key Features
  • Managed by a well-resourced team with expertise spanning all emerging market regions.
  • Primarily bottom-up process actively seeks out the best country and currency positions from across the investment universe.
  • A robust and disciplined process, underpinned by an industry-leading tool-kit, drives investment decision-making.
Both currency volatility and bond duration are important – and distinct – market drivers. We consider our exposure to these separately, aiming to get the best from each of them for our investors.
Werner Gey van Pittius
Antoon de Klerk

Investment approach

01

Rigorous approach to bottom-up selection of bonds and currencies, driven by views of investment specialists.

02

Dedicated top-down process to ensure overall portfolio risk exposure is optimal and in-line with our views.

03

Industry-leading investment toolkit aids investment decision-making and supports a robust and repeatable process.

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General risks. The value of investments, and any income generated from them, can fall as well as rise. Costs and charges will reduce the current and future value of investments. Past performance does not predict future returns. Investment objectives may not necessarily be achieved; losses may be made. Target returns are hypothetical returns and do not represent actual performance. Actual returns may differ significantly. Environmental, social or governance related risk events or factors, if they occur, could cause a negative impact on the value of investments.

Specific risks. Charges from capital: For Inc-2 and Inc-3 shares classes, expenses are charged to the capital account rather than to income, so capital will be reduced. This could constrain future capital and income growth. Income may be taxable. Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income. Default: There is a risk that the issuers of fixed income investments (e.g. bonds) may not be able to meet interest payments nor repay the money they have borrowed. The worse the credit quality of the issuer, the greater the risk of default and therefore investment loss. Derivatives: The use of derivatives may increase overall risk by magnifying the effect of both gains and losses leading to large changes in value and potentially 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. Government securities exposure: The Fund may invest more than 35% of its assets in securities issued or guaranteed by a permitted sovereign entity, as defined in the definitions section of the Fund’s prospectus. Interest rate: The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise.

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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